Title: Trade Friction: A Primer on the United States and China
Headings: Trade Friction: A Primer on the United States and China
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Trade Friction: A Primer on the United States and China
Trade Friction, Trade Spats & Trade Wars
Partial Equilibrium Model of a Trade Spat
Washington Consensus
State of Play
Alternative to Undermining Multilateral Trade Institutions

Content: The European Union followed up by imposing $2.5 billion in retaliatory tariffs. The Bush administration quietly withdrew its import taxes in 2002. The Obama administration imposed taxes of 35 percent on the import of tires in 2009 to ostensibly save jobs. The move resulted in a net increase of about 1,200 jobs at a cost of roughly $1.1 billion or $900,000 per job. After a rigorous economic analysis, the Obama administration, quietly backed away from the tariffs, withdrawing them in late 2012. The prospective tariff war the Trump administration intends to start with China will likely look like the Obama experience. Outsizedretaliation by China on industries beyond steel and aluminum such as agricultural, including the symbolic targeting of products politically important to Trump such as Harley Davidson motorcycles, Levis jeans and Kentucky bourbon, has made for high-profile optics. However, we would need to observe more far-reaching actions before characterising the ongoing friction as a trade dispute. Trade War
A trade war occurs when countries move beyond WTO involvement and issue punitive taxes against a country or economic bloc. The first sign isa period of disruption and devolution in global trade: