When Donald Trump won the US election in 2016 the President vowed to make trade fairer for Us citizens.
Since then, Trump has started a war with some of America’s oldest trading partners, including superpower China.
The countries are regarded as the two biggest economics worldwide for global influence and China has since accused the US of launching the “largest trade war in economic history.”
In an exclusive interview with Express.co.uk, Professor of Business Economics at Brunel University London Francesco Moscone explains what has happened in the economic war so far.
What has happened so far?
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Prof Moscone said: “The economic war started at the beginning of 2018 when the US imposed tariffs on laundry machines and solar panels coming from China.
“Despite several meetings between the power rivals to come to an agreement, the US recently imposed higher tariff rates of billions worth of Chinese imports.”
After the first two rounds tariffs were imposed on $50 billion worth of goods from China.
US-CHINA TRADE WAR COULD TURN INTO ‘REAL WAR’ WARNS EXPERT
But in the third round, which took effect on September 24, tariffs were imposed on goods worth $200 billion alone, totalling $250 billion worth of goods since the war started.
China hit back at the United States, announcing it would impose tariffs on up to $60 millions worth of US goods.
Prof Moscone said: “The tariffs are likely to increase even further, with the expectation that the yuan will be to its weakest against the dollar in more than a decade.
“The trade war has led to military and political tensions between the two nations, addressing concerns on the vulnerability of emerging markets, as well as the financial and economic stability of the world economy.”
Mr Trump has warned even more could be on the way, and if he decides to go ahead with the fourth round it would mean all of China’s exports to the US would be subject to the tariffs.
If the Presidents puts his words into action Washington would impose fresh tariffs on $267bn worth of Chinese products.
Prof Moscone has previously warned there is a “more realistic possibility of turning this trade war into a real war” if relations continue to sour.
He said: “In the last decades, the two superpower economies have relied on and exploited the globalisation for boosting their economic growth.
“While the Chinese have been confident that the US would encouraged free trade, the Americans were hoping that the economic liberalisation in China would have led to political liberalisation as well.
“Taking everyone by surprise, such expectations ended this year when Mr Trump announced in a tweet its protectionist policy and China moved towards a monocratic system, allowing Xi Jinping to govern for life.”
He added: “As the trade war is escalating, the future of the entire world economy is in danger given that all economies are interconnected, with a more realistic possibility of turning this trade war into a real war.
“The deterioration of the relationship between China and the US may accelerate China’s plan to conquer the South China Sea, putting an end to the American hegemony in a strategic geographical area where transits the most important maritime trade routes.”
According to the professor, the victims of the ‘trade war’ will be consumers, who will end up paying a higher price for all the products coming from abroad.
He said: “History has shown a financial battle between the world’s two biggest economies doesn’t look good for anyone.”