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Topic: US Imposed Tariffs on China Negatively Affect Trade Over the last few years the United States and China have had an increasingly tense trade

Topic: US Imposed Tariffs on China Negatively Affect Trade

Over the last few years the United States and China have had an increasingly tense trade relationship. The strain within this relationship was exacerbated by high tariff rates placed on a multitude of goods imported into the United States from Chinese manufacturing facilities. This increase in tariffs on has caused the price of goods on which the tariffs are imposed to greatly increase which has in turn decreased the demand for these goods within the United States. Guobing Shen states that "on average, a 35% reduction has been observed in China's exports of products covered under the levied tariff lines to the tariff levying countries" (Shen, Wang, & Xu, 2021). The decrease in desire for Chinese manufactured goods within the United States has also affected the export of goods from the United States to China. The high tariff rates that were imposed upon China created a tit-for-tat reaction and they are no longer accepting the high volume of goods from the United States that they were before the introduction of high tariff rates.

The United States and China are creating a trade war that has no winners in the end and affects much more of the world than just these two countries.The surplus of goods from each of the countries that is no longer being accepted by the other still has to go somewhere if money is to be made on the goods. The other issue that arises in this situation is that the goods that the United States and China are not able to produce for themselves and were relying on each other for now has to be sourced from another country. This creates strain on not only the United States and China but also the other countries of the world. The goods that may have at one time been cheaply purchased are now going to cost more money which many countries do not have at their disposal. The tariffs imposed on China by the United States is not only ruining the trade relationship between the two countries that are included in some of the most powerful countries in the world it is also causing strain within the remaining countries that do business with these two world powers.

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