Subscribe to enjoy similar stories. As Donald Trump returns as the US President on 20 January, the world will closely watch his trade policies. On 3 January, referring to a chart showing tariffs as a percentage of federal revenue, he posted on Twitter: “The Tariffs, and Tariffs alone, created this vast wealth for our Country." "Tariffs will pay off our debt and, MAKE AMERICA WEALTHY AGAIN!" he added.
Trade relations with China are already fraught with tension. In December, the outgoing Joe Biden administration imposed export controls on more Chinese companies and launched an investigation into China's semiconductor sector. China, in turn, announced a ban on exports of gallium, germanium, antimony and materials important to the electronics industry.
Such acts of retribution could intensify under Trump, who had promised 10% tariffs on Chinese imports and threatened levies up to 60% during his election campaign. During his first term, Trump initiated a trade war with China in 2018, imposing tariffs on $250 billion worth of Chinese goods, including steel, aluminium, solar panels and washing machines. China responded with retaliatory tariffs on $110 billion of US products, including agricultural products.
Between 2019 and 2023, US imports from China averaged $470 billion, lower than the $539 billion in 2018 and $505 billion in 2017. US exports to China, on the other hand, averaged $137 billion between 2019 and 2023, higher than its 2017 and 2018 numbers. Globally, however, demand for Chinese exports has only been growing.
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