A US-China trade war is the last thing the world economy needs now
As the global economy suffers as a result of COVID-19 lockdowns and restrictions, the pandemic has also renewed tensions between the US and China, creating instability in what was already a fragile truce on trade between two of the biggest world economies. The pandemic has left the global economy in a precarious condition, much more so than when the trade war began over two years ago. At this moment, a full-blown trade war would inflict irreparable damage on either country.
The pandemic has pushed both China and the US’s economies into the deepest contractions experienced in decades, causing tens of millions to lose their jobs and file for unemployment. Although China has claimed it has passed the worst of the virus, the world is still struggling to recovery socially and economically from the pandemic. This creates issues in terms of trade, as President Donald Trump’s recent threat of new tariffs on China has been met with concern and worldwide criticism.