Tariff War - The Clash Trump vs China
Introduction
Tariff War-What is Tariff War All About?
To Reduce U.S. Trade Deficit
To Revive American Industry
To Punish unfair trade practices, particularly intellectual property theft by China
These tariffs were part of a broader "America First" economic policy that Mr. Trump introduced, marked a stark shift from previous globalist trade ideologies.
China's Retaliation
China didn’t sit back and responded with its own set of tariffs on American agricultural products, automobiles, and more. China responded immediately and his response includes:
1. Targeting U.S. farmers: A strategic move to hurt Trump’s voter base
2. WTO complaints: Accusing the U.S. of violating trade norms
3. Currency manipulation accusations: The U.S. labeled China a currency manipulator
4.Shift in alliances: China began strengthening trade ties with Europe, Asia, and Africa
China's response was strategy not just economic—it was political. By targeting regions loyal to Trump and positioning itself as a stable trading partner globally, China aimed to win both on the trade front and on the global stage.
Global Reaction
European Union: Imposed retaliatory tariffs on U.S. goods like whiskey and motorcycles
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Canada and Mexico: Reached a new agreement (USMCA) but after months of intense negotiations
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India and Turkey: Imposed counter-duties on American products, signaling displeasure
Globally, the tariff war contributed to slowing economic growth, market volatility, and a re-evaluation of trade dependency on the United States.
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