Tariff War Between United States and China Continues

Luciano Gonzalez
Staff Writer

News_Luciano_Tariffs_ Michael Vadon, Flickr.jpg

PC: Michael Vandon

President Donald Trump has been critical of China’s influence on the global economy, and especially its influence on the American economy for as long as he has been in power. This criticism isn’t limited to words, as the president has been trying to enact an economic strategy that weakens the influence of China on the American economy through tariffs. The latest round of those tariffs were enacted just a few days ago.

The latest round of tariffs are not only from the United States to China, but also from China to the United States. Currently, the tariffs from the United States on Chinese goods amount to a 10 percent tax on over 200 billion dollars worth of goods over a range of industries.

Some of these tariffs affected products such as baseball gloves and network routers.

These tariffs coupled with the previously implemented tariffs cause a sizable impact to the profits made by Chinese goods in the United States and close off a good chunk of the American marketplace to Chinese producers and exporters by imposing this tax on roughly half of all Chinese goods exported to the United States.

The General Secretary of the Communist Party’s response has been to put a tariff on American goods entering the United States affecting over 100 billion dollars worth of goods.  

President Trump’s tariffs have also had a significant impact on agriculture, where subsidies have just begun being paid to farmers all over the country.

These government subsidies are a method by which the Trump administration has attempted to use in order to aid workers in affected industries. The reaction to the subsidies has not been warm with farmers, as they have been upset at their loss of income as well as the limiting of their ability to ship their goods overseas.

China has different tools at their disposal and their methods of response will differ from the tools of the United States that were used to impact their ability to trade with the United States.

Possible responses could include restricting the ability of Chinese citizens to travel to the United States, measures to alleviate the pain done to Chinese exporters such as cutting the taxes they have to pay and even placing quotas on American exporters in addition to or instead of placing tariffs on their goods.

Another target for future tariffs could be Canada. President Trump has repeatedly made threats to impose a striking 25 percent tariff on Canada’s automotive industry, which if imposed would have a significant impact on that industry’s ability to export goods to the United States. In the words of the Canadian ambassador to the United States, David MacNaught, it would, “…fundamentally change the relationship between the United States and Canada for a long time.”

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