The Sino-American Trade War Benefits China’s Competitors
The higher the tariffs, the greater the competitive advantage third-country suppliers will gain over Chinese firms.
U.S. Trade Representative Katherine Tai and Indian Minister of Commerce and Industry Piyush Goyal at the 14th Ministerial-level meeting of the India-United States Trade Policy Forum (TPF), New Delhi, India, January 12, 2024. Credit: @AmbassadorTai via X
U.S. President Joe Biden and his predecessor Donald Trump, the presumptive Republican nominee in November’s presidential election, are competing to portray themselves as tough on trade and China. Biden has already imposed a 100% tariff on Chinese-made electric vehicles, and Trump has vowed to impose a 200% tariff on Chinese cars manufactured in Mexico, along with a range of other protectionist measures affecting steel, solar panels, semiconductors, and batteries. The European Union is li
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If Xi Jinping is becoming more preoccupied with internal politics, it could lead to a period of relative calm in China’s relations with the United States.
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