China, too, sounds hungry for a trade deal with the United States. It’s unclear how to even start the conversations. Trade tensions are increasing as U.S. imports face new tariffs. This impacts almost all consumer goods and has already resulted in retaliation by China.
Last year, the United States imported $438.9 billion in goods from China alone. This leapfrogged China to become the second-largest exporter to the US (just behind Mexico). The US has adopted a baseline tariff of 10 percent on all imports largely due to the ongoing trade conflict. Furthermore, the country has slapped additional tariffs on countries where it has large trade surpluses. Should these new tariffs be enacted, some Chinese goods would see increases of up to 104 percent.
Almost 50 countries have written to the US to complain about President Trump’s trade policy. They are enthusiastic about finding just the right pathways to set up mutual recognition-type trade accords. In the course of these negotiations, China decided that the appropriate response to US tariffs was matching tariffs on US goods.
Jamieson Greer, the US Trade Representative, commented on the situation, stating that “they [China] elected to announce retaliation.” He emphasized the importance of moving towards an economy focused on producing tangible goods and services that generate jobs for working and middle-class Americans.
In a statement reflecting China’s position, Lin Jian, a spokesperson for China’s Foreign Ministry, remarked, “We Chinese are not troublemakers, but we will not flinch when trouble comes our way.” He signaled China’s uncompromising resolve to protect its rights and interests. He denounced the US actions as “economic bullying.”
The message from the US was exceedingly clear and strong. Should China not remove its retaliatory measures, it would be slapped with another 50 percent tariff on its products. This attempt is indicative of a larger effort. The strategy on the United States’ part of employing Section 301 tariffs against those countries with whom the US maintains large trade deficits, specifically China.
Over the last few years, the US has berated countries like India, China, and Turkey for putting up barriers and burdensome regulations that keep American exports out. Recently, the European Union has issued bans on US shellfish imports. In stark contrast, Australia has implemented strict barriers to pork imports.
As trade war tensions continue to escalate, President Trump seems to think that China is the one most desperate to come to an agreement. He announced, “China wants to make a deal more than we do — they’re just not sure how to go about it. We are ready to go! We are waiting for their call. It’s going to happen!”
The landscape of US-China trade relations remains in a constant state of flux against this challenging backdrop. White House Press Secretary Karoline Leavitt even went so far as to predict, in an op-ed-worthy flourish of confidence, America’s market might. As she famously claimed, “America no longer needs other countries the way other countries need America.” She reiterated President Trump’s strong desire to use this new leverage to the benefit of American citizens.
As the two countries pursue their complex trade relationship, it is uncertain if or when negotiations will continue, let alone make progress. As developments continue to unfold, the world watches closely with implications on global markets and international relations.
