History advises no one won a trade war in the past and assumes that no one can win at present or in the future. There had been several wars in the past which influenced the entire world with massive losses.
In 20th Century, the most remarkable trade war ignited by Smoot-Hawley Tarrif Act of 1930 which imposed roughly 20000 imported goods. Many historians and economists kept debating about the exacerbated damaged of this war. Later, they also added that it was partially became a reason for rising Nazis and fascist parties worldwide. This war got global recognition as no one triumphed. This war became the major reason for American great fluctuation over economy.
In 1960, there occurred another war which was imposed tariffs on US chicken by Germany and France. This war is known as "Chicken Wars" . Consequently, US retaliated by imposing tarrifs on French brandy, light trucks and Volkswagen Buses. Though, both of the sides were the victims but US was the most. As a result this war was the malicious for the renovating world after the World War II.
In this 21st century, where world population are growing with a freedom tendency, thinking such a war considered as the worst. But a new war exposed as US randomly imposed tariffs on several developed countries which are meant to be allies of US and have been trading partners for decades.
Economists are thinking about the consequences of new trade war and it is anticipated that not only developed countries but also developing countries will be affected as well. Most of the countries of Indian subcontinent including India are at risk of being fallen from growing economy. ,Many historians contend it also contributed to the rise of the Nazis and other fascist parties. There is almost universal agreement that no one "won" that trade war.
As Indian subcontinent is growing towards developed world, trade war can be harmful for its progress. This subcontinent already exports to these developed countries without tariffs in many sectors. In contrast, they can be imposed with tariffs as the importer countries are facing war with the same categories. Consequently, the developed countries will impose tariffs on this subcontinent's countries to compensate their losses.
Business talk....nice...
ReplyDelete