Trump's tariffs against China: a struggle that the United States could lose

Trump's tariffs against China: a struggle that the United States could lose

The President of the United States, Donald Trump, has sparked a direct conflict with China - a nation that may be able to stand up to the United States in a trade war. Trump's escalation against China, which is accompanied by an inch of at least 104 % on goods that are introduced into the USA, represents the most serious step in its global customs offensive. This step harbors the potential, American citizens in the form of increasing prices.

background of trade relationships between the USA and China

This conflict follows the United States' efforts to address China's perceived trade abuse. He is also the summit of a deterioration in relationships that were moving over a decade, which was triggered by an aggressive and nationalist course of a competitor that was once considered a Pacific, which has been transformed into an hostile superpower.

The United States has been trying to manage China for over 50 years - since President Richard Nixon's groundbreaking journey to chairman Mao Zedong to "open" an isolated and impoverished nation and to create a gap between its leaders and the communist brothers in the Soviet Union. It has passed almost a quarter of a century since the USA was in the world trade organization (WTO) in the hope of promoting democratic changes and integrating it into a regular, western economic system.

effects of trade conflicts on the American population

The final defeat of this well -intentioned efforts is apparently apparent in Trump's second term. The president came to power through a populist wave, which was partly a reaction to globalization, which American industrial workplaces exported to China and was accompanied by devastating consequences for the USA.

The prospects for an agreement with China seem dark. Trump claims that numerous nations are willing to conclude trade agreements to alleviate the painful US tariffs. But China does not join these countries. Beijing rejected Trump's warning not to retaliate on a former custom of 34 % and warned that it is ready to fight "until the end".

China's answer and strategic considerations

china shows any appearance that it believes that Trump can survive in this conflict that it has been preparing for years. It remains unclear whether Trump and his most important advisors are fully prepared for China's resistance or the pain that American consumers can inflict. The idea that his "great relationship" with XI Jinping would lead to a quick withdrawal of China is a mistake. The view of a trade agreement with Beijing, similar to the one that came about during Trump's first term and mostly collapsed during pandemic.

rising tensions and uncertainties

Trump's claims that the USA had been "raped" and "robbed" by trading partners. But his complaints about Beijing's behavior were shared by numerous presidents. Tensions often arise through questions such as Delivery of goods , market access for US companies, theft of intellectual property, exchange rate manipulation and industrial espionage.

Trump believes that he has a unique and perhaps the final opportunity to transform the dynamics of the USA with the largest trade nation in the world according to the US trade representative. "We only have this one chance," Trump said on Monday to reporters in the Oval Office. However, his impulsive and undifferentiated approach shows little respect for the dignity and power of China - a recurring topic in the relationships of his administration to other countries.

The effects on American consumers

Painful effects are imminent for American consumers. China has been the largest foreign supplier of goods for the United States in recent years, with a share of up to 16 % of all imports. It dominates the market for smartphones, computers and toys that will probably be affected by massive price increases that will make them unaffordable for many Americans when the new tariffs come into force. In combination with the tariffs of the bid administration on China, which are based on the tariffs of the Trump government, China is now facing an average customs set of 125 %.

Small companies are also at risk. While giants such as Apple can consider alternative production sites, US companies that rely on goods and components from China are very at risk. "If you are a small company, especially in the import or supplier business, you will experience pain," warned Alex Jacquez, a former special assistant for economic development and industrial strategy under President Joe Biden.

The consequences will be far-reaching and the US economy will heavily burden. "It is worrying that there is no rational idea or a clear direction for the strategy," added Jacquez.