China Unlikely to Yield in America's Tariff War Despite Rising Tensions

The trade war between the United States and China, initiated by President Donald Trump in 2018, has entered an uncharted phase, marked by escalating tariffs and mounting tension.

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What began with Trump's January threat to impose a 10% tariff on Chinese imports has now ballooned to a staggering 104%. In response, China has retaliated with an 84% tariff on US goods, and both nations are engaged in a war of words, with Beijing vowing not to back down. As the conflict deepens, the risk of a global economic downturn grows, while ordinary consumers bear the brunt of rising prices. Yet, despite its economic challenges, China is unlikely to blink first in this ongoing standoff.

ESCALATING TARIFF WAR

The tariffs have become the focal point of the trade war. Originally, the Trump administration imposed a 10% tariff on Chinese imports, but within three months, the rate skyrocketed to 104%. China swiftly retaliated, imposing its own set of tariffs on US goods, including industrial and agricultural products. The result was a trade imbalance where the US is significantly more dependent on China for consumer goods like smartphones, toys, and computers. In contrast, China imports industrial supplies such as soybeans, fossil fuels, and jet engines from the US.