Why does the US want a trade war with China

China's currency (Yuan) manipulation

Let me explain, why China manipulates its currency?

China has the mammoth comparative advantage when its come to export orientation. Its cheap labour and comparatively low cost of production work as a great propeller for occupying the market across the world. USA is always the most preferable destination for China to export.

Why ?

Because, USA is the biggest consumer !

Thus, devalued its currency may be resulted to short-term loss for China, but long term gain for China. Because, China has all the necessary measures to attract the biggest consuming nation by supplying products in less cost.

The first and foremost target for China is to seize the market across the world. So, devalued its currency is never a loss for China but a trick to occupy the market.

According to allegation of Trump, China intentionally devalued its currency.. By doing so, China primarily get acceptance to the consumer of USA and Europe. Because, the same product varied in terms of price tags. As a results, the consumer of USA or Europe easily get motivated to swallow the products from China, because its less costly to avail. In this manner, the domestic products and company of USA face a kind of doomsday in their run.

The most shocking issue for the USA's president Donald Trump is the consumer motivation or tilt towards Chinese products.

As a result, there is a conspicuous trade surplus of China to USA. And this ushered in such a way that the whole of USA's economy facing a stiff challenge.

Trade deficit

According to very recent data from different sources, the current trade deficit of USA with China is a mammoth staggering amount of 370+ billion $.

Here, USA's export to China is a staggering amount of 165+ billion $ and China's export to USA is almost 506 billion $ .

See, the advantage of China in bilateral trade with USA. Its absolutely thundering and threatening to USA economy.

Dooming USA manufacturing ( both big+small) industry

As China hold an unshakable stands in trade with USA, the manufacturing industry of USA is gradually demising. The reason is same.

China firstly buy some raw industrial material from USA . Secondly , China modify and remanufacture these materials. Then, it sells all modified and remanufactured products to USA in a less costly manner. In this run, the USA's face a kind gradual demise because they can't supply the same products with similar price tags like China.

USA's production company's always lag behind in this case. Because , they have no cheap labor and cheap production cost like China. So it's fail to supply all these products in a parallel price tag like china

Thus , USA become gradually marred to Chinese production and company.

Employment

Employment is another concern for USA. Though , of late the graph of overall employment scenario is increasing compared to previous administrations. But the real concern lies with the China's production. If this going on, then anytime in future USA company will be forced to cut off their employees number, because they will be unable to hold it anymore. Its all about loss and so the result.

So, it goes without saying this will affect USA's employment scenario.

So what option left behind for USA ?

Its simple….

Impose tariffs over and over again on Chinese goods for reducing trade surplus and so on.

The Trump administrations have left only this option to battle with China in trade.

That's it…