The United States has collected more than $35 billion in tariffs on imports from China according to data from the Department of Customs and Border Protection (CBP).
President Donald Trump began in 2018 an increase in tariffs on imports from China to try and correct the imbalance affecting several areas of trade relations between the two countries—the difficult access of U.S. companies to the Chinese market, forced transfer of technology, theft of U.S. intellectual property, or currency manipulation.
In July 2018, tariffs of 25% came into force on goods valued at $34 billion, followed by new import duties of $16 billion in August.
Again on Sept. 24, 2018, tariffs of 10% on Chinese goods valued at $200 billion entered into force and were scheduled to increase to 25% in January, but President Trump postponed the increase because of the good progress of negotiations between the two countries.
However, Beijing finally backtracked and failed in its commitments to stop the forced transfer of technology, the theft of intellectual property and the manipulation of its currency, according to Reuters.
Fatal consequences for China
Growth in Chinese industrial production declined by 4.8% in July and by 4.4% in August. The value of delivered industrial exports also fell by 4.3% from July to August, the first monthly decline in at least two years according to Reuters.
The regime of the Chinese Communist Party (CCP) tried to counterattack with tariffs on U.S. products worth $60 billion, but precisely because of the imbalance between imports and exports to the United States, both its room to manoeuvre and the effects of its tariffs were much smaller.
China imported about $120 billion in U.S. products in 2018 and just over $70 billion as of August this year, according to Census Bureau data.
New agreement on the horizon
On Oct. 30, President Trump announced that Chinese and U.S. negotiating teams were about to approve a first phase of a trade agreement that will focus heavily on agricultural products.
“China and the USA are working on selecting a new site for signing Phase One of Trade Agreement, about 60% of total deal, after APEC (Asia-Pacific Economic Cooperation) in Chile was cancelled due to unrelated circumstances,” President Trump said on Twitter.
“The new location will be announced soon. Chinese leader Xi and President Trump will do signing!”
President Trump commented this summer that he thought the Beijing regime would be trying to lengthen the negotiation time ahead of the 2020 presidential election, as he believes another president will give the CCP more favorable treatment, according to BNN Bloomberg.