Why Trump cannot win a trade war? Smartphones hold the answer
A trade war, like any other war, is when a certain representative of oneself, a city, or nation somewhat tries their very best to control the trade of a certain area. Usually, a trade war is referred to when the entire globe is involved. Many people believe that President-elect Donald Trump is planning on starting a trade war.
According to The Verge, Trump is planning on hiking trade tariffs. This, of course. is in line with his plan to diminish US debt to satisfy his "America first policy." For that, having control over the majority of US trade is arguably the best way.
This does not look good for the rest of the world. If Trump does in fact win a trade war then it could massively drag the global economy down. Not only that - a large number of businesses worldwide could actually go bankrupt!
Luckuly it was pointed out - in the most amazing manner, that this could never happen. Right now, Trump's biggest barrier is China and has insulted the country several times regarding its business strategies.
China responded in a very not-so subtle manner to this by simply mentioning how they will just stop making smartphones, especially for the US.
Smartphones were not necessary a few decades ago but ever since their release, they have become the most essential tool a human being could have. Almost no one can be seen without a smartphone these days.
Speaking of such, according to Fool, China holds the record for being the largest produced and consumer of smart phones.
China beautifully replied in an article: "Apple can't build an iPhone without China, but China can build many awesome phones without Apple". The title itself says more what is needed to be said.
China has the manpower and technology to make the best smartphones in this world. They are in a way leading the smart phone production and consumption industry. Since smartphones are so essential, they will always play a huge role in the global market, as its trade is driven by its constantly-growing demand.
In fact, China can even push US out of this market using smartphones as a pawn. Therefore, if Trump really plans to engage in a trade war against the Chinese, then he will most likely fail.
