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The United States and China have one of the world's most important business enterprises relationship.
The world's two largest economies, the United States and China, have engaged in a trade battle that could have unexpected side effects on the global economy.
Washington has applied tariffs on goods imported from China. Beijing reacted by approving new rates for a similar amount.
In total, some 800 Chinese products, from heaters to industrial robots and cars, will be entitled to l 25% when they are imported into the United States [19659011] For Trump, "trade wars are good": how tariffs can affect Latin America
Similarly, China has set a rate of 25% on a set of products from the United States , oil to soy But what do the data tell us about the current trade conflict? When Donald Trump became President of the United States, he promised to make the country "even bigger." Part of that plan was to radically change the way trade deals work with other countries and protect the national economy. 1 Back to 1970
In 1900, tariffs represented about 30% of the total value of US imports. UU At that time, the country was trying to reduce the entry of foreign goods and develop its young industrial sector. [19659089] The new tariffs will bring the country to a level of protectionism never seen since the 1970s when the average tariff was 6.5%.
- China c. United States: How can we all be affected by the "biggest commercial war of history" started this Friday
In 2016, the average tariffs were 1.5%, the lowest level since independence in 1776. [19659015] 2. Bridging the trade deficit
With these new protectionist policies, the main goal of Trump is to reduce the inflow of Chinese imports and d & # 39; encourage Americans to buy more products made in the country.
The president believes that this is the best way to bridge the trade deficit with China, which currently stands at 375 million US dollars
It has increased since 2001, when China joined the World Trade Organization and began to significantly improve its position and relationships. with a good part of the world.
3. Jobs at risk
There is concern that tariffs may also affect jobs in the United States
The Trade Partnership an economic research firm, notes that the impact will be worse
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
This will depend on the level of individual tariffs and whether their application extends to other countries such as Canada, Mexico and the European Union.
4. How much damage to the trade?
Since last March, both governments have published (and canceled) reports and lists of what they will do.
Up to now, only customs duties of US $ 3,000 million have come into effect. Trump has threatened new tariffs
In addition to those that came into effect this Friday, and in response to China's retaliation in June, the US president ordered tariffs estimated at $ 200,000 million and threatened to Impose other rights. similar.
5. Which products are concerned?
The list of goods to be affected by customs duties 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 trade war could potentially affect products of other US trading partners
It could also provoke a backlash when countries begin to take action against its partners, who could act in 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 US trade.
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