The US Enters a Trade War With China
Over the past several weeks, President Trump has implemented several executive orders increasing tariffs on imported goods from all over the globe. These tariffs have caused some wavering in the relationships between the US and other nations, most notably with China.
On February 1, President Trump imposed tariffs on goods from Canada, Mexico, and China. Two days later he paused the tariffs on Canada and Mexico but kept the tariff on China. Shortly after, China responded with 10-15% tariffs on natural gas, crude oil, agricultural machinery, and coal.
Since then, the US and China have been issuing reciprocal tariffs (tariffs imposed as a response to receiving a new tariff policy) back and forth with each other with no clear end in sight.
Chinese Foreign Ministry spokesman Lin Jian spoke about the ensuing trade war in March, stating, “If the United States persists in waging a tariff war, a trade war, or any other kind of war, the Chinese side will fight them to the bitter end.” President Trump responded to this rhetoric by increasing tariffs exponentially. Many economists have classified this conflict as a trade war due to the constant reciprocal tariffs each country has levied against the other.
The trade war with China and the possibility of pending trade wars with other countries have caused much concern. Many Americans struggling to keep up with inflation worry about their future finances, as these tariffs will continue to drive prices up. Beyond America, there is also international concern about the impact of this trade war.
As China and the United States are both global superpowers, the repercussions of this trade war will be felt by the world. Economists warn that it could result in the destabilization of the global economy, dragging the globe into an economic recession and forcing many into poverty. It could also result in the US losing its place as a superpower, as we are heavily protected by several allies who are now somewhat disillusioned with the US due to these tariffs.
Trump continues to push for these tariffs because he plans to reinstate manufacturing within America. These tariffs could incentivize manufacturers to bring their factories back to America. However, there is no organized plan to implement the infrastructure needed to accomplish this goal.
