USA-China Trade War: Causes and Consequences for the Global Economy

The goal of the paper is to study current US-China trade war and to analyze background of the dispute, impact of protectionist policies of the countries both on American and Chinese economies and on the whole world economy. In the paper main reasons of the trade war were considered. These are the following: massive manufacture transfer from US to China, fast economic growth of export-oriented part of Chinese economy, that resulted in huge US trade deficit with China. US President, who has imposed a tariff raw to counter competition from China's economy, has made the first step in this trade dispute. Chinese authorities reacted with a set of tit-for-tat tariffs against USA. Eventually this tariff dispute resulted in destructive trade war between the world's two largest economies. The research shows that US-China economic dispute will make mostly negative impact overall global economy. Economic growth is expected to slow down in Eurozone countries, Asian and Pacific region, especially China and Japan. Chinese economy have already de-monstrated decline in GDP growth index. The trade war, followed by devaluation of Chinese Yuan and decreasing economic indexes, is worsening economic prognosis for the country. USA economy either is not expected to gain big bonuses from the trade war. Despite capitals running out of China to US American economic growth is slowing down. Economy of Eurozone countries is also expected to suffer from the trade dispute considering the significant contribution of international sector to European economic growth. Current trade dispute could open up new possibilities for Russia that could increase export of natural gas to China. Consequences of US-China trade war would be mostly negative for Ukraine.