On May 12, China and the United States reached a phased agreement on trade issues in Geneva. Before May 14, China and the United States will significantly reduce the "reciprocal tariffs" and related counter-tariffs and retaliatory tariffs imposed since April 2 to 34%, and temporarily implement them at a 10% rate within 90 days, while canceling other retaliatory measures.
The Sino-US tariff dispute began in Trump's first term.Circle shape paper edge guard corner protector Trump himself has long held a strong "mercantilism" and believes that the US trade deficit with China and other countries is a harm to the United States. From the first tariff increase on $35 billion of Chinese exports in May 2018 to January 2020, before China and the United States reached the first phase of the trade agreement, Trump imposed a 25% tariff on $250 billion of Chinese exports after three 301 tariff investigations and imposed a 15% tariff on the remaining $300 billion of products in stages through the fourth 301 tariff investigation. The conclusion of the 2020 trade agreement exempted some products from tariffs in the fourth batch, and the tariff rate of the remaining products dropped to 7.5%, but the previous tariffs were not canceled. Of course, China retaliated against the US's tariff increase on exports to China.
Although the Biden administration generally supports free trade,Circle shape paper edge guard corner protector it still imposes tariffs on some "strategic products" on the grounds that China is engaging in unfair competition.Circle shape paper edge guard corner protector Specifically, it includes raising tariffs on Chinese electric vehicles from 25% to 100%,Industrial moving packaging wrapping film tariffs on semiconductors and photovoltaic products from 25% to 50%, and tariffs on lithium batteries, steel, aluminum, medical equipment, etc. Industrial moving packaging wrapping film from about 7.5% to 25%.
After Trump was elected president for the second time,Three proof thermal paper he once again showed a strong preference for choosing tariff policies as a key means to improve the competitiveness of the United States and employment in the manufacturing industry.Three proof thermal paper He not only repeatedly declared that he would impose tariffs on other countries, but also made personnel and theoretical reserves for the implementation of tariff policies.Circle shape paper edge guard corner protector For example, Trump chose Bessant, who supported his tariff policy, as Secretary of the Treasury among many candidates. Stephen Milan, the new chairman of the President's Council of Economic Advisers, also made a more systematic and theoretical explanation and discussion of the policy goals and implementation ideas of the tariff policy in the "User's Guide to Reshaping the Global Trade System" published at the end of 2024. Milan suggested that in order to boost the manufacturing industry and raise fiscal revenue, the US government could consider imposing a general tariff of about 10% on all countries, while the tariff on China could reach 50%-60%.
After Trump took office in late January 2025,Three proof thermal paper the tariff shock arrived as expected.Three proof thermal paper On February 1, Trump first announced that he would impose a 25% tariff on Canada and Mexico from February 4, and an additional 10% tariff on China, on the pretext of not cooperating with the United States in the governance of fentanyl;Industrial moving packaging wrapping film but when the increase was approaching, he announced that the increase would be postponed for one month to facilitate the bilateral negotiations with Canada and Mexico, but the Chinese tariffs took effect as scheduled. On March 3,Three proof thermal paper Trump raised China's tariffs by another 10%;Industrial moving packaging wrapping film Three proof thermal paper although the tariffs on Canada and Mexico also officially took effect on March 4, after the US stock market fell, on March 6, Trump proposed to implement another month of exemption for products within the scope of the US-Canada-Mexico Free Trade Agreement to promote trade negotiations, and reduced the tariff rate on imports of oil, fertilizers and other products outside the Agreement. China has once again become the country mainly targeted by US tariffs. In the face of the US provocation, China also carried out a certain degree of countermeasures, but overall it remained restrained and the tariffs on the US did not rise sharply at the same time.
Perhaps because there was no obvious counterattack,Three proof thermal paper the Trump administration's tariff policy became more radical. On March 12, the Trump administration once again imposed a 25% tariff on all imported steel and aluminum,Industrial moving packaging wrapping film triggering retaliation from the European Union and Canada. However, the Trump administration did not back down, but instead leaked that it would impose "reciprocal tariffs" on all countries.
On April 2, the announcement of "reciprocal tariffs" shocked the world. The United States imposed a 10% basic tariff on almost all trading partners, and imposed higher tariffs on 57 economies.Three proof thermal paper The tax rate is related to the proportion of the US trade deficit with the country to the total imports from the country. Among them, China's tariff rate is 34%. The global financial market has shown obvious shocks. This time, China took a resolute countermeasure, announcing that it would impose an additional 34% tariff on US imports from April 10, and launched a combination of measures such as restricting rare earth exports.