The trade war between the US and China has been heating up over the past few weeks. Many people are confused on whether we are winning this war or not?
A trade war references the actions that a country takes against another in terms of international trade. Tactics can include raising import tariffs or restricting trade all together. These are usually sparked by unfair trading practices.
China hasn’t used fair trading practices with the US and they showed no signs of stopping, until President Trump raised tariffs. The US has lost hundreds of billions in cash each year to China for decades.
Under President Trump’s direction, America has prevented the loss of a majority of that cash. The president told the press at the G7 Summit, that the US could possibly take over China’s supply chain if a deal isn’t reached soon.
It also does not seem like the president is interested in ending the trade war without a far deal.
Since 2018, America and China have been going back and forth with opposing tariffs. It started with steel and aluminum, but now includes over 100 different products. The trade war has showed no signs of slowing down since.
American farmers have taken a hit during this economic battle, the Chinese government placed stiff tariffs on American agricultural products. President Trump has authorized roughly $28 billion to bailout farmers. Many farmers still support the president.
Are we winning the trade war? Signs point to yes.
For starters, the American government isn’t the only leadership with a strong divide related to this issue. The Chinese government is just as divided. This doesn’t necessarily signal a win, but it does show that they are facing the same division.
One of the signs pointing towards an American victory is that China has lost millions of industrial jobs since the beginning of this dispute. All while the US is at record low unemployment.
The Chinese currency has also seen big drops and their overall business levels have decreased. The Chinese government is now seeking an end to the trade war as pressure mounts; indicating that we are winning this economic dispute.
Do you think we are winning the trade war? Tweet me @GeneBrownUSA