Hello everyone, welcome to the first (and hopefully not last) edition of “What’s Up with the World Right Now?” In this series of articles, we’ll be exploring all sorts of current events that are happening in the world right now with me, Audric Radityaputra, as your host! It’s important to keep track of what’s going on around the world right now because our calling as Christians is not limited to Langhorne, PA, but includes the world that God has created, and, as an international student who grew up overseas, I will try to provide my take on certain global events from a neutral, third party, perspective. I’ll give you guys all the pros and cons of a global event, tell me what you think of the article in the comments section below and let’s have a civil discussion on the matter at hand!

Today’s topic of discussion is the current Trade War between the United States of America and China and how it affects more than the two main countries involved on a global scale. This is an important subject for all of us currently living in the United States, and it’s not as simple as it seems.

With negotiations between the United States and the People’s Republic of China heading to an unsatisfactory halt, leaders of both countries (Donald Trump and Xi Jinping respectively) have agreed to meet at the G20 Summit in Osaka, Japan. Sour negotiations between both parties regarding the United States’ new regulations on increasing the Tariff on products entering the United States from China have resulted in the possibility of Chinese exports to the United States to decrease exponentially, possibly causing the loss of thousands of jobs from both countries that rely on the trade of items from China to the United States.

Both the American and Chinese governments refuse to acknowledge each other’s demands on their trade policies, with the U.S government demanding an increase from 10% to 25% ($200bn at 25%) in Tariffs and China refusing to accept any changes to their trade policies with the United States, threatening the U.S with an increase of Tariffs from U.S exports to China with the same percentage ($60bn at up to 25%).

Donald Trump has been one of the most vocal figures of the trade war with China, imploring that China rethinks their decisions and follow his demands. “China should not retaliate – [it] will only get worse!” Mr. Trump tweeted shortly before news of the Chinese decision came. He added that US consumers could avoid the tariffs by buying the same products from other sources. “Many tariffed companies will be leaving China for Vietnam and other such countries in Asia. That’s why China wants to make a deal so badly!” he said.

Many Economic advisors from both parties have spoken out regarding the situation. Larry Kudlow, one of Donald Trump’s top economic advisor has said that the prolonging of the trade war will only make both sides suffer the consequences of high Tariffs. The postponed negotiations between both parties have also trickled down to other markets in Asia with investors bracing their portfolios for any outcome that may happen in the near future.

So what does this mean for me, a student at Cairn University? Well for one, expect prices on various products to increase over the next few months. The tariffs imposed by both governments make it harder for companies to export and import stuff from/to their countries. This isn’t the best news for college students but keep in mind that the price increase won’t be TOO bad; companies will suffer for a bit, but they’ll be able to rebound soon.

Another effect the Trade War has will be in the political scene. An analyst predicted that while the U.S is divided on bipartisan issues, China’s one communist party is looking ahead into the future by analyzing investment opportunities to other countries. This affects the Trade War because the upcoming 2020 elections will be a major factor for the United States in the future, and China will adjust their business plans accordingly. So far, both parties in the US have agreed that trade with China should be reduced; the level in which they reduce trade varies on the different candidates.

All in all, the Trade War that’s happening right now is not the most ideal situation for a country to be in, financially. However, don’t worry too much, as this conflict will most likely resolve within the next few months, with President Trump aiming to end the trade war just in time for his presidential campaign. What do you think though? Is China to blame for this mess? Or do you think that President Trump has imposed insane tariffs for China? Let us know in the comments section below!