Trade War: United States Sanctions on China

 

Trade War: United States vs China Tariffs

The ongoing trade war between the United States and China has occurred for over three years now when Donald Trump was in office. China has long had high tariffs on US products unlike the US tariffs for China being at a fraction of theirs, putting tariffs on about $350 billion of Chinese-made goods. Trump’s efforts to balance out the tariffs amongst both countries have led to a controversial trade war over the last few years. President Joe Biden is now in office and does not agree with Trump’s decision and approach, however, undoing these placed restrictions seems to be a complicated matter after the officials’ first face-to-face meeting.

As Katherine Tai, Biden’s US trade representative points out, this situation is difficult as “China is simultaneously a rival, a trade partner, and an outsized player whose cooperation we’ll also need to address certain global challenges”.

The US now has tariffs on 66% of Chinese exports, with the average rate being 19%. This has increased by almost six times prior to the start of the trade war, which occurred in 2018. China has placed tariffs on American exports too, which makes it an incentive for its buyers to buy from other countries.
The trade war continues in 2021 with the officials from both countries trying to smooth over what has occurred since 2018.