Title: How will the US-China trade war affect global Supply Chain? | Corporate training Skill Dynamics
Headings: How will the US-China trade war affect global Supply Chain?
How will the US-China trade war affect global Supply Chain?
Low Profitability
Prices increase
Demand declines
US China Trade war – Is it the right approach?

Content: Hence, global trade went from $5 trillion in 1996 to $19 trillion in 2013. However, the United States has started trade disputes with several different economies in order to achieve what it believes to be fair trade. The most intense one is its conflict with China, resulting in a series of additional tariffs. People are assuming that because America is the net buyer and China is the net seller in their trade relationship, China will lose the trade war and ultimately surrender. The truth is that tariffs will hurt both countries. This is because most tariffed products can’t easily be replaced, so they will continue to be purchased and this time at higher prices. Hence, if no deal is reached by March 2, Trump has said he will proceed with raising tariffs to 25 percent from 10 percent on $200 billion worth of Chinese imports, at a time when China’s economy is slowing significantly. On the other hand, Beijing has retaliated in turn to U.S. tariffs. When a tariff is applied to a particular good, here’s what can happen: Low Profitability
Due to the trade war, it is certain that in some industries, companies will be reluctant or unable to pass the cost onto their customers.