summaries conclusion of the article below.

Introduction

China and United states of America are the two largest economies on earth with a China`s GDP being at $17.7 trillion USD in 2021 while the United States GDP sits at around $22.99 trillion USD. In 2018 the then President of the US started a trade after, as he accused the Chinese government of using unfair trade practices to impose tariffs on Chinese imported goods. In total the US government imposed a total of $360 billion worth of tariffs on Chinese made goods, which in response the Chinese government imposed $110 billion on US products (BBC, 2020). Overall, the impact of the trade war between China and the USA had implications around the world causing prices in for many goods and services to go up. The trade war also led to a major increase in unemployment for certain industries, decrease in income and this in turn led to overall less output (Tax foundation, 2021)

Free trade and trade protection

Free trade Free trade is a theoretical policy under the circumstance that government imposes no tariffs, taxes or duties on imports at all and imposes no quotas on exports. In real world, although absolute free trade cannot be achieved, countries still work on the same page to promote free trade such as negotiation about "free trade agreement" for that most countries can benefit from free trade (Longley 2018). According to the graph below, if it is assumed that is the trade scenario between The U.S. and China, it can be clearly seen that when there is no trade, consumers in U.S. need to pay double the world price for one motorbike to achieve equilibrium. However, when there is free trade, China can export excessive volume of motorbikes to the U.S. which will let U.S. consumers gain welfare and enjoy lower price. In the meanwhile, such international trade also drives the productivity of Chinese manufacturers with increasing producer surplus. After free trade, The U.S. gains area b+d, and China gains area n, which prov

A. With a Tariff Price ($ per bike) Sd With the tariff gain g, lose b + d 330 Tariff 300 b Dd 0 0.6 0.8 1.4 1.6 Quantity (Millions of bikes per year) Marginal external benefits from domestic 9 production MEB ($ per bike) 0 0.6 0.8 QuantityA. The U.S. B. International C. The Rest of the World's Motorbike Market Motorbike Market Motorbike Market Price Price Price ($/unit) ($/unit) ($/unit) Sus 2,000 A 2,000 U.S. pretrade World price price with trade Exports C B F SX Sf 1,000 1,000 F 1,000 Imports 700 700 H Dus D m Df 15 40 65 Quantity 50 Quantity 25 50 75 Quantity (thousands) (thousands) (thousands) Sus = U.S. supply S, = Rest-of-world supply of exports Sy = Rest of world's supply Dus = U.S. demand (S = Sf - Df) Df = Rest of world's demand Dm = U.S. demand for imports (Dm = Dus - Sus)