impact of trade restrictions between USA and China on the austrlian economy

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Abzlna

Economics

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this is a group assignment

this is a assignment for 3000 words and this topic divide into three parts

1. china and USA trade

2. impact on Australia

3. recommendations

so my part is 2nd (Impact on Australia) so u just need to write that part and I need 1000 words for that and also I need 4 to 5 slides power point for presentation

thanks

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Running Head; IMPACT OF TRADE RESTRICTIONS BETWEEN US AND CHINA ON AUSTRALIA

The Impact of Trade Restrictions between USA and China on the Australian Economy.
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IMPACT OF TRADE RESTRICTION BETWEEN US AND CHINA ON AUSTRALIA

The Impact of Trade Restrictions between USA and China on the Australian Economy.
Two major economies in the world, that is, China and the United States are facing a trade war
whereby United States has put in place $200 billion dollar tariffs on Chinese imports and China
has reacted by effecting $60 billion tariffs on US imports (Farrer, 2018). The effect of these trade
restrictions will have negative effects on both China and the United States and this will have a
ripple effect on Australia since Australia does business with both countries. Australia is a small
open market economy and hence it is subtle to changes in the global market and besides that,
China is Australia’s major trading partner as it exports products such as wine, iron ore, pork,
copper and coal to China (Farrer, 2018). Some of the impacts of the trade restrictions have been
explained below.
The trade restrictions will have a negative effect on Australia’s economy by reducing the
national income and reducing the growth rate of the Australian economy. The increase in tariffs
for China imports to the US may weaken the Chinese currency thus discouraging the investors in
China who export materials such as iron ore for use in making steel which they later export to the
United States (Farrer, 2018). Other products that Australia exports to China include wine, pork,
copper and coal. According to Bargshaw (2018), the trade restrictions between China and US
could lead to a loss of $ 36 billion in Australia, which translates to...

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