China vs. USA: 6 Graphics That Explain "The Greatest Commercial War Of History"

The world's two largest economies, the United States and China, have engaged in a commercial battle that could have unexpected side effects. the world economy

Washington applied tariffs on goods imported from China valued at US $ 34 billion. Beijing reacted by approving new rates for a similar amount.

In total, about 800 Chinese products, ranging from heaters to industrial robots and others. cars, will have a 25% duty when they are imported to the United States.

Similarly, China has set a rate of 25% on a range of products from the United States, from oil to soybeans.

tell the data about the current trade conflict?

1. Back to 1970

When


Donald Trump
became the president of the United States promised to make the country "big again". Part of this plan was to radically change the way trade agreements work with other countries and protect the national economy

In 1900, tariffs represented about 30% of the total value of US imports At that time, the country was trying to reduce the entry of foreign goods and develop its young industrial sector.

The new tariffs will bring the country back to a level of protectionism that has not been seen since the 1970s, when the average tariff was 6.5%.

In 2016, average fares were 1.5%, the lowest level since independence in 1776.

2. The closing of the trade deficit

With these new protectionist policies, Trump's main goal is to reduce the inflow of Chinese imports and encourage Americans to buy more products made in the country.

The president thinks it is the best way to bridge the trade deficit with China, which currently stands at 375 billion US dollars.

It has increased considerably since 2001, when China joined the World Trade Organization and began to significantly improve its position. and his relations with a good part of the world.

3. Jobs at risk

Fears that tariffs also affect jobs in the United States

The Trade Partnership, an economic research firm, says the impact will be worse than expected with some 400,000 jobs [19659023] Credit: BBC Mundo

Manufacturing companies that use metal, electrical components and building materials will have to pay more for their raw materials and possibly charge more for their work or reduce jobs.

This will depend on the level of tariffs and whether their application extends to other countries such as Canada, Mexico and the European Union.

How much does it hurt to trade?

Since March, both governments have published (and canceled) reports and lists of what they will do

Up to now, only the rates of Worth $ 3 billion came into effect, but in addition to those that came into effect this Friday, and in response to China's retaliation in June, the US president ordered estimated customs duties to $ 200,000 million and threatened to impose other rights on another. similar value.

5. Which products are affected?

The list of goods to be affected by the tariffs has been updated several times by the two governments.

China focuses on agricultural products and mechanical parts for the energy sector, while the United States targets a large number of industrial products.

6. To what extent can trade conflict be dangerous?

Trump's commercial war could potentially affect products of other US trading partners

This could also trigger a chain reaction as countries begin to take action against their partners, who could act on Retaliation.

US Census Bureau data. show how the country's economy relies heavily on imports.

Since 1992, China has played an extremely important role in American trade.