The last time a trade war happened in the U.S., things didn't go well for the economy. Will history repeat itself as Trump puts a tariff on steel and aluminum? Here are the facts.
We know a possible trade war between the United States and China would rattle certain American businesses and force consumers to pay more for products such as electronics. But what exactly is a trade war and why is President Trump targeting China?
Essentially, a trade war is a back-and-forth dispute wherein a country imposes tariffs on certain imports in order to restrict trade, reports CNN. In response, the country or countries affected by those tariffs impose their own fees on imports. Put simply, tariffs are fees or taxes assessed on certain products when imported into a country.
In the case of the China-U.S. squabble, Trump imposed aluminum and steel tariffs in early March in order to protect those American industries. He then announced 25% tariffs on $50 billion to $60 billion in Chinese exports to the U.S., including aerospace, information and communication technology, and machinery.
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