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Assuming that global international trade sharply declines because of the “trade war” (in the forms of increases in tariff and other trade barriers such as import quota on both sides) between the U.S. and China, the U.S. and the European Union, and the U.S. and Japan. Everything being equal, explain the likely impact on the following:
Global productivity, economic growth and inflation
Australian consumers who buy goods imported from China, Japan and the United States.
Australian producers who need to source from both China and the United States.
Australian exporters such as a mining company who exports iron ore and coal to China and Japan.
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