Tariff Battle: Where the U.S. and Chinese Moves May Lead

The tariffs on imported aluminum and steel enacted on Friday, a day after announcing levies up to $60 billion in Chinese goods and China made its response. China decided to add tariffs on $3 billion in more than 100 American products, including pork, wine, fruits and so on to balance the loss.

Compared to these two numbers, the American industry seems would not be affected too much, but I believe that this is a warning from China. If the tariff policy is not canceled or modified, China would find more way to against it.

The article mentioned that if Chinese could not export their steel, they have to consume domestically. And because there are so many different kinds of steel for different uses, American steel industries could not satisfy all the demand. In the short term, the price would go much higher but in the long term, the American might have the chance to develop their own steel industry.

The tariff battle, however, is harmful to all the countries because of the economic globalization. The economy of one country would affect others and for protecting its own benefit, the countries would publish some policy to react but it might hurt other countries' benefits as well. This is very complicated and I'd like to see how things go in the end.

https://www.nytimes.com/2018/03/23/business/economy/china-tariffs-explain.html?rref=collection%2Fsectioncollection%2Fbusiness-economy&action=click&contentCollection=economy&region=stream&module=stream_unit&version=latest&contentPlacement=2&pgtype=sectionfront