Documentos de Académico
Documentos de Profesional
Documentos de Cultura
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REASON
• US was not getting enough out of global trading system instead its making loss.
• US has high trade deficit with China.
• China was following their own rules in international trade.
Currency manipulation
Technology theft / Intellectual property theft - China forcing foreign firms to
transfer technology under the tag of joint venture program.
Restriction on the cloud computing industry.
State owned enterprises.
IMPACT ON WTO
• Tariff will damage agreement under WTO.
• WTO will lose its relevance.
• US and EU already feels that WTO can no longer push their agenda but the
developing world is still keeping its faith.
https://t.me/Civilsbuzz https://t.me/UPSC_Zone_Official
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https://t.me/Civilsbuzz https://t.me/UPSC_Zone_Official
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IMPACT ON INDIA
• No direct impact on India
India have only 4%of its steel export and 2% of its aluminum export to US.
• Have indirect impact – if tariff is expanded to other metals which constitute a bigger
share of India’s export basket.
• Impact on interest rate and debt market in India
2008 global crisis forced developed countries to cut their interest rate to zero and
India was benefitting out of it.
But interest rate has been increasing since mid-2016.
https://t.me/Civilsbuzz https://t.me/UPSC_Zone_Official
Downloaded from https://t.me/pdf4exams
https://t.me/Civilsbuzz https://t.me/UPSC_Zone_Official