Us-china tarif war: Economic conflict between America and China is not a new issue. In the trade war that started from 2018, the two countries put heavy tariffs on each other’s products from time to time. However, this dispute has now reached a new height, when the US increased the tariff on products imported from China to 125%.

The main objective of increasing tariffs against China from the US is to motivate domestic companies to manufacture and reduce dependence on Chinese goods. Trump’s move will affect not only China, but also American consumer, because cheaper goods imported from China will now become expensive. This can increase inflation in the US market.

What does America buy from China?
China is one of the largest exporting countries of America. In the US market, electronics, toys and consumer products are well supplied from China. These include especially electronics items, including smartphones, computers, video games, lithium-ion batteries etc.

Light fixtures, seats, mattresses are exported from China to America in home decor and furniture. Talking about textile, sweaters, clothes and shoes reach the US market in large numbers from China. In other products, China also exports plastic items, motor vehicles parts, party decorations, medical equipment etc. Now the increase in tariffs will increase the price of these items in America.

What does China import from America?
China not only sells goods in the American market but also buys from them. China is the leading buyer of American agriculture product and industrial machinery. The main goods from the US to China include agriculture products, energy resources, industrial machinery, medicine, including scrap copper, esiclic hydrocarbon, ethylene polymer. If China reverses American exports in these areas, then American agriculture and tech companies may suffer a big loss.

Impact on trade
The trade deficit between the US and China in 2024 stood at $ 295.4 billion, which is 5.8% higher than in 2023. At the same time, exports from the US to China declined by 2.9%, while the import of Chinese goods increased by 2.8% in the US. It is clear from this data that China is also getting a shock due to the dispute, but the consumer is also being affected in America. If both countries do not back down, then this trade deficit can increase further, which can pose a threat to global economic instability.

Donald Trump News: US President Donald Trump is going to impose new tariffs from April 2. He is planning to tax the import of car and car parts. Trump is saying ‘Liberation Day’ on 2 April. He says that he will impose equal tax on the business partners, whose business policy does not seem right.

Earlier, Trump has also taxed the import of steel and aluminum. He has also imposed tax on goods coming from Canada, China and Mexico. Now it is indicated that he will also impose tax on countries in Asia, Europe and South America, who sell more things to America but buy less from America.

This tariff will be applicable from April 2

Donald Trump has said that he will impose 25% tariffs on motor vehicles, which will start from April 2. He told that the tariffs on the parts of the car will be applicable later. The US imports about 80 million cars every year, which costs around $ 240 billion. Apart from this, the US has also imposed 25% tariffs on imports from Canada and Mexico since March 4 and 10% tariff has been imposed on energy imports from Canada.

Other countries are also imposing tariffs

Motor vehicles and their parts are made under the Free Trade Agreement of America-Mexico and Canada, so they are kept separate from tariffs. But this is the same as long as the custom offices of America do not create a system of imposing new duty. The White House says that the purpose of imposing tariffs on Canada and Mexico is to prevent their governments from entering illegal migrants and illegally formed by entering the US.

On February 4, the US imposed a 10% tariff on goods coming from China, which was increased to 20% on March 4. However, the shipments that cost less than $ 800 have been kept separate from this tariff. In response, China has imposed 10 to 15% tariffs on US goods, including agricultural equipment. Canada has also imposed tariffs on US goods worth more than $ 40 billion in reply, while Mexico has avoided putting tariffs. Apart from this, on March 12, the US has imposed 25% tariffs on steel and aluminum coming from any country in the world.

These countries have an impact

This decision of America has affected Canada, Brazil, Mexico, South Korea, Vietnam and Japan as these countries send steel and aluminum to the US. The European Union has also decided to impose tariffs on US goods worth $ 28 billion from 1 April, including Borbon Whiskey, Motorbikes and Boat.

From March 25, the US has imposed 25% tariffs on goods coming from countries that buy oil from Venezuela. The White House says that they want to pressurize the ‘corrupt’ government of the country. According to research company Moody’s Analytics, the current tariffs are on a total of $ 1.4 trillion worth of goods. This has increased the average US tariff rate on imported goods to 10%, the highest level after World War II.

Which new tariffs will be applicable from April 2?

Trump is repeatedly saying ‘Liberation Day’ on 2 April. He wrote on social media platform Truth Social, “April 2 will be Liberation Day in America.” He said, “Every country in the world has looted us for many decades-whether they are friends or enemies. Now the time has come that America will get its honor and money back.” During the election campaign, Trump had said that 10 to 20% discount will be given in tariffs on their goods that enter America. Recently, he talked about putting a reciperook tariff and said, “They charge us, so we will also levy them.”

However, in an interview to Newsmax TV on March 24, he said that his stand could be soft about this scheme and many countries can be given relief. He said, “Some countries will be kept separate. We will levy less fees from the fee they pay on us.” According to the CNBC report, the White House has said that they can leave a plan to put tariffs on those countries who impose value added tax on their goods.
Kevin Haset, director of the US Economic Council, said, “I see that the market is hoping that big tariffs will be installed on a few countries.”

Know how the effect of tariff will be will be

The tariff will affect both America and other countries. Economists believe that imposing tariffs will increase the prices of things for American consumers and the production cost of American companies will also increase. American exporters will also be harmed by putting tariffs in response to other countries. According to Moody’s Analytics, due to tariff, America’s economy may fall by 0.6% in the coming year and will also lead to 2.5 lakh jobs. Moody’s Analytics also stated that Canada and Mexico are very dependent on the US market for their imports, so they too may have to pay a heavy price for this tariff and it will be difficult to escape the recession.