In light of the escalation of economic tensions between the United States and China, the trade war between the two countries appears to be a candidate to enter in a more severe and deep stage.
US President Donald Trump has threatened to impose additional customs duties by up to 50% on his country’s imports from China, unless Beijing retracts its reprisal definitions, in an escalation that might have heavy repercussions on the entire global economy.
Washington ascends on “Economic Liberation Day”
US President Donald Trump announced the imposition of new fees of 34%on all American imports from China, added to previous fees by 20%, thus increasing customs duties imposed to 54%.
The US President described this day as “liberation day”, in a symbolic reference to what he considered a liberation from economic dependency.
If Trump has moved forward in implementing his threats with an additional 50%, the total customs duties on Chinese goods will reach 104%, which is an unprecedented level in the history of trade relations between the two countries. This anxious percentage raises serious questions about the ability of the Chinese economy to withstand this type of pressure.
Beijing: “We will fight to the end”
In response to US measures, the Chinese government announced the imposition of 34% corrupt customs duties on all American imports, as of April 10.
In an official statement, the Chinese Ministry of Commerce described the American threats as a “fatal mistake” and “public blackmail”, stressing that Beijing will not hesitate to defend its interests.
Reuters quoted Chinese officials as saying that the new American graphics are pressure heavily on Chinese exporters, and they may suffocate their profit margins.
Some analysts believe that Trump’s strategy reflects Washington’s desire to reduce China’s influence within the largest consumer market in the world, even if this costs it an open economic escalation.
The trade balance tends to Beijing
The data of the US Trade Representation Office (USTR) indicates that the volume of trade exchange in commodities between the United States and China in 2024 amounted to about 582.4 billion dollars, distributed as follows:
- US exports to China: 143.5 billion dollars, a decrease of 2.9% compared to 2023.
- American imports from China: $ 438.9 billion, an increase of 2.8% over the previous year.
- Commercial deficit in favor of China: $ 295.4 billion, an increase of 5.8% from 2023.
This great deficit confirms that Washington’s attempts to reduce its dependence on Chinese goods have not achieved concrete results yet, which reflects the complications of the economic relationship between the two powers.
The most prominent mutual goods between the two countries
The 10 most important American imports from China (2023):
- Consumer electronics: 96 billion dollars
- Textiles and clothes: $ 68 billion
- Chemicals: $ 42 billion
- Machines and building materials: $ 33 billion
- Electrical equipment (except for semiconductors): $ 30 billion
- Basic minerals: $ 28 billion
- Home appliances: $ 24 billion
- Transport equipment: $ 24 billion
- Clean energy and batteries: $ 15 billion
- Visual and medical devices: 12 billion dollars
The 10 most important American exports to China (2023):
- Grains and oil seeds: $ 18.5 billion
- Oil and Gas: 17.6 billion dollars
- Education and educational means: 13 billion dollars
- Medicines: 11.3 billion dollars
- Air spare parts and equipment: 6.8 billion dollars
- Navigation tools: 6.8 billion dollars
- Semi -conductors: 6 billion dollars
- Mechanical compounds: 6.1 billion dollars
- Industrial machines: $ 5 billion
- Meat products: $ 4.5 billion
China .. the second largest economy and the largest global source
Despite the pressure, China still retains its position as a great economic power. The country’s GDP in 2024 reached about 134.91 trillion yuan ($ 18.8 trillion), to remain second in the world after the United States, according to the data of the China Breving platform.
Distribution of GDP in China (2024) to the most prominent sectors:
- Industrial sector: 30.1%
- Wholesale and retail trade: 10.2%
- Financial Mediation: 7.3%
- Agriculture, forests, animal education and fishing: 7.2%
- Building: 6.7%
- Real estate: 6.3%
- Software and IT services: 4.7%
- Transport, storage and shipping: 4.4%
- Leasing and Business Services: 4.2%
- Hotels and Restaurants: 1.8%
A huge trade surplus and a fixed export strategy
China is currently the world’s largest exporter, and is evaluating active trade relations with more than 150 economies. The value of its exports in 2024 amounted to about 3.58 trillion dollars, an increase of 5.9% over the previous year, according to Statista.
As for its imports, it amounted to $ 2.59 trillion, which means achieving a trade surplus exceeding 822.1 billion dollars.
The Association of Southeast Asian Countries (ASEAN), the European Union, and the United States are the most prominent commercial partners of China.
Amid this escalation, none of the parties seems to have the intention to decline. Washington is betting on economic strangulation, Beijing betting on steadfastness and strengthening alternative commercial alliances. With the increasing complexity of the global scene, the question remains:
Does the trade war succeed in reshaping the global economic system?
Or is it just a new episode in the struggle of influence between the greatest powers?
