Kathmandu: The US and China are in the midst of their second trade war in seven years. Earlier this year, President Trump announced an initial 34 percent tariff on China, which China retaliated with. For a time, both countries' tariffs were above 100 percent (i.e., more than the full value of the goods).

The chaos caused an immediate downturn in financial markets, with experts warning that the economies of both countries could lose hundreds of billions of dollars. Since then, tariffs have been reduced somewhat. The tariffs on Chinese goods entering the US market are now between 40 and 50 percent, and on American goods entering the Chinese market between 10 and 30 percent.

The combined gross domestic product (GDP) of the US and China is $50 trillion, according to data from the International Monetary Fund (IMF) as of April. Of the two, the US is the world's largest economy, with about $31 trillion, while China is the world's second largest, with a GDP of about $19 trillion.

If we exclude the next three largest economies: Germany, India, and Japan, the combined GDP of the remaining 184 countries is also around $50 trillion. This means that even though regional trade is growing, it is almost impossible to escape from one of these two economic superpowers: the US or China in the global economy.

The US is the largest importer of consumer goods, while China is the largest exporter. Most countries in the world have made one of these two their largest trading partners. Therefore, although many countries are not satisfied with the geopolitical position of these two countries, these countries have become the loudest voices on the world stage due to their economic influence.

Meanwhile, the combined GDP of Germany, India, and Japan, which are after the US and China, is around $13 trillion. Similarly, Nepal's economy is ranked 97th in the list of 189 countries with $46 billion.