Trade war escalates as Trump asks US companies to close China operations

The US-China trade dispute has escalated to new heights as the US president has asked American companies to shift production to the US instead of China.

This was in response to the additional tariff on American products in China, announced earlier. The Chinese retaliation came in response to the Trump govt’s announcement of levies on Chinese imports.

Both the options of shifting production out of China and producing in the US seems unlikely. As of now, there is hardly any alternate location to start production right away and manufacturing in the US will increase the costs multi-fold.

Both the countries are involved in a bitter trade war amidst fear of global recession.

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