A US-China Trade War is the Last Thing the Global Economy Needs Right Now

Escalating blame over the coronavirus pandemic has rekindled tensions between the United States and China, jeopardizing the already tenuous trade agreement between the two largest economies in the world.

The pandemic has left the global economy in a far more vulnerable state than when the trade disputes began two years ago, and another trade war would be damaging for both nations.

Both countries have been severely impacted by the virus, with their economies experiencing significant contractions and tens of millions of jobs lost. Although China claims to have moved past the worst of the pandemic, the global economy is still far from recovery.

President Donald Trump's recent threats of new tariffs on China and Beijing's hints at retaliatory measures are particularly concerning under these circumstances.

"The timing of renewed trade tensions could not be worse," noted economists from S&P Global Ratings in a recent research report. "The risk of higher tariffs and a growing technology cold war could disrupt technology trade and investment, undermining what could be a crucial engine for recovery in 2020."