The trade relationship between China and the United States is strained due to disagreements in regards to tariffs on imported goods.
Chinese tariffs on United States goods have been unsettling to current president Donald Trump, who promised to always get the “best deal” for the American people during his campaign. As a result of the trade imbalances between the two countries, Trump proposed a 25% tariff on steel and a 10% tariff on aluminum from China. In response, China has vowed to cut tariffs on automobiles; however, the country’s leader warns the United States there are consequences to an escalated trade situation. Xi Jinping is vague in regards to both his plans to execute cutting tariffs as well on what China’s retaliations will be- although, it is assumed to include more tariffs that will target American businesses.
Jinping has shown his clever calculations in regards to systematically targeting businesses located in states of great importance for Trump’s re-election. Certainly, his furthering of tariffs will come at a heavy cost to the president and Congress during midterm election season. Ultimately, due to the dissatisfaction with Trump’s proposed tariffs from the global community, China has an advantage over the United States. After all, Jinping is trying to establish “free trade” in attempt to expand its trade relationships. However, it’s in China’s best interest to remain trading partners with the United States, especially due to the massive debt the U.S owes. I believe both countries will resolve their differences and eventually come to an agreement on trade.