US President Donald Trump carried out and feared the customs duties on Chinese products after Beijing was accused of unfair commercial practices and not taking measures regarding the smuggling of fentanel (narcotic substance) to the United States.
On Saturday, the Republican imposed additional taxes of 10% on Chinese goods, to be added to those that were previously imposed.
On the other hand, Beijing expressed her interception on Sunday, pledged to respond through appropriate measures, and reaffirming that there will be “no winner” in the trade war.
Below, a view of tensions and developments in relations between the two largest economic powers in the world.
What are the amounts concerned?
The total trade exchanges between China and the United States reached more than $ 530 billion in the first 11 months of 2024, according to Washington.
During this period, the value of Chinese exports to the United States amounted to more than 400 billion dollars, according to American figures, which makes China the second largest commercial partners for the United States, after Mexico.
China is one of the main suppliers of goods such as electronics, clothing and textiles to the United States, according to the Peterson Institute for International Economy.
But the great defect in the trade balance was a long -term source of concern in Washington, with the trade deficit with the Asian giant $ 270 billion during the first 11 months of the year 2024, according to American figures as well.
The tremendous support provided by the Chinese state to its manufacture, as well as the unbalanced treatment that American companies on Chinese territory have, help feeding Washington’s accusations of Bigger of dumping, that is, to export at a price lower than local prices, and proof of dumping requires greater evidence than just an increase in imports, Which takes time, according to a report by the French Press Agency.
However, the Chinese economy remains greatly dependent on exports, which explains the reluctance of its leaders to change the current situation.
What happened during Trump’s first state?
During his first presidential term, the real estate pole imposed customs duties on Chinese imports of hundreds of billions of dollars.
The main demands of the United States were to provide better access to the Chinese market, which is bound by the state, while national companies get the preference in them.
At that time, Beijing responded by imposing taxes on imports from the United States, which, especially in American agriculture.
After long and arduous negotiations, the two countries reached the “first phase” trade agreement in 2019, which led to a truce in the trade war between them.
Under the agreement, China has pledged to import US products worth $ 200 billion, including agricultural products and marine food worth $ 32 billion.
https://www.youtube.com/watch?v=aym4vj3wgwg
However, the experts confirm that Beijing has not achieved these goals, as a result of the economic shock it faced shortly after the Kofid-19s.
“China has only reached 58% of imports from the United States stipulated in the agreement, which is even lower than the level it was before the trade war,” says the analyst at the Peterson Institute for International Economy, Chad Brown.
What changed during the Biden era?
After his election in 2020, Joe Biden did not abolish the customs duties imposed by his predecessor, but he adopted a more specific approach to the goals.
Washington has intensified its efforts to restrict electronic chips exports to Beijing, as part of a strategy aimed at preventing American technology from reaching the Chinese army.
The Biden Administration has also increased some customs definitions in response to what it described as “industrial surplus” in China, in an attempt to face the impact of government subsidies provided to Chinese manufacturers, which would lead to dumping markets with cheap commodities.
The fees on electric vehicles also doubled 4 times, to reach 100%, while customs tariffs raised the semiconductors from 25 to 50%.
The batteries, basic minerals and medical equipment were also targeted by this procedure.
https://www.youtube.com/watch?v=7rb2hc52rky
What can be expected during Trump’s second state?
The Republican President proved that he was serious about his threats during his election campaign.
But he linked customs duties to the royal fate of the Tech Talk application, and threatened to take action if the Chinese mother company does not give up the social network.
On Sunday, the Chinese Ministry of Commerce pledged to respond and “its own procedures … to protect China’s rights and interests in a firm manner.”
For its part, the Chinese Foreign Ministry renewed that “there is no winner in a commercial war or a customs war,” considering that this new battle “will inevitably affect and harm future cooperation in the field of drug control.”
This comes as the United States accuses China of adopting a negative approach to the smuggling of fentanel into its territory. This opioid substance led to more than 70,000 deaths due to excessive doses in the United States, according to the American authorities.
