Foreword

Abstract

As we all know, trade tensions between China and the United States have eased in August 2019, following the announcement by the United States that it will impose tariffs on Chinese imports. China, as well, introduced additional tariffs on the import from the United States. These developments have triggered strong movements in global stock markets, a drop in global oil prices and higher capital outflows in emerging economies. As trade disputes threaten to become even more perverse, the prospects for global growth have darkened.Moreover, although trade disputes between China and the United States may create opportunities for several countries, the overall effects on the global economy are negative. Not only that current unresolved trade tensions will prolong the weakness of global trade and demand, but it is likely to trigger a wider spread of protectionist measures by other countries, derailing global economic activity. Importantly, prolonged trade conflict could cause long-term damage to global development prospects. The loss of income could have an impact on social spending, while for households, rising prices of goods as a result of tariffs decrease purchasing power and consumer welfare, especially if national and imported goods are not easily replaceable.....