Since May 2018 every social, economic, and political institution, at global level, has been under threat as a consequence of the US biggest protectionist approach. America has imposed $ 34 Billion worth of tariffs on steel and aluminium, and China has responded with its own tariffs on some US goods, including soybeans, chemicals, cars, and medical equipments. That's why there is uncertainty in the US stock market, as investors are moving to haven assets such as bond and gold.
Last week some UE politicians talked about a trade war and potential collapse of the world trade system. Actually the protectionist approach to the US economy will not be related to economic benefits. Americans may protect some jobs, but they will lose for more jobs in the medium term.
In the long run the US will lose jobs, will lose investments, and will lose its economic power, because over the last three decades America has benefited from trade from East Asia. As above mentioned, on the one hand, China is also taking action and will soon establish commensurate measures, considering that US policies have been used to achieve protectionist goals. On the other hand, China president, Xi Jinping, recently said his country will continue to import EU goods and foreign investments.
It seems that this trade war between the US and China will not show a winner.
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