After the Trump administration announced a 25 per cent tariff on over 1,300 Chinese imports, the trade relationship between U.S.A. and China has only faced more conflict.
This move comes after the announcement of multiple tariffs on imports of solar panels, washing machines, steel and aluminum already imposed by the Trump administration. Despite backlash from major players such as the European Union and South Korea, the U.S. isn’t holding back.
Trump’s announcement of tariffs on $50b worth of Chinese products, mostly electronics such as flat screen televisions and medical devices has fueled China’s backlash.
Following an announcement of tariffs of 25% on wine, pork, and pipes from the U.S.A., China has taken Trump’s challenge and retaliated with a plan to impose tariffs on $50b worth of cars, chemicals, and soybeans.
This has once again met with Trump’s counterchallenge of an additional $100b of tariffs. Both parties seem to be prepared to push back in order to gain a long-term advantage in the high-tech industry.
While Trump certainly seems focused on gaining an advantage in manufacturing over China, and preventing the fast-growing innovations of the Chinese manufacturing sector, these trade impositions have been met with criticism.
Businesses are worried of the implications that trade tensions between U.S. and China will have on their overall growth. This is particularly concerning when we recall China’s large market, which many American firms target as customers.
It remains unclear whether these proposed tariffs will truly come into action and we will see a trade war between China and the U.S. unfold.
While tariffs will definitely have an effect on the performance of American and Chinese firms, in this day and age, it should be innovation and progress that ultimately drive performance and sales. Trade tools like tariffs, especially the drastic ones proposed by the Chinese and American governments, will no doubt cause major changes and disruptions in global trade.
Megan DeGrom was born and raised in New Jersey just outside the Pine Barrons. As a journalist, Megan has contributed to many online publications including Rotten Tomatoes and Variety. In regards to academics, Megan earned a degree in business from St. John’s University. Megan covers economy stories here at Clear Publicist.