As the world most powerful economies heighten their tensions, a significant risk to the global economy arises – a US-China trade conflict. Experts are of the view that an all out trade war would result in collapsing international market systems, disturbing supply networks, and ultimately leading to a decrease in world economic value.
This follows an increase in threats of tariffs, restrictions on technology exports, and hostile policies from both Washington and Beijing with regard to the trade deficit, disputes over intellectual property, and international relations.
Possible Declines in The Global Market
The impact of a trade war on the US and China economies is dire. Coupled with the consequences their deeply intertwined economy will suffer, and those countries who closely work with Chinese and American supply chains will be severely damaged. Predicted sectors like electronics, automotive, semi-conducters, and agriculture are expected to face rising operational costs, declining market offers, and deteriorating tainted funds.
Dr Lena Ortega, a worldwide commerce expert for Global Economic Forum reported, “With US and China trade having such a huge impact on commerce worldwide, halting it at any point will severely affect other global powers economy”
Increase in Inflation and Supply Chain Disorder
With so many sectors still managing the aftershock of the pandemic, further crises could bring these industries to the breaking point. The impact ranges from consumer products to critical raw materials, and if international collaboration comes to an end, scarcity and rising prices could become an everyday reality.