The latest round of tit-for-tat tariffs between the U.S. and China has expanded the dimensions of their trade war, and the lopsided totals of goods affected give the impression that Donald Trump has the upper hand over his counterpart Xi Jinping.
Domestic politics, however, make the U.S. president’s position a lot dicier than it looks.
The Trump administration on Sunday slapped a fourth round of punitive tariffs on a broad range of Chinese goods, including household electric appliances and clothes. This provoked China to counter with its own customs duties on farm products and other imports from the U.S., further widening a conflict that is beginning to impact the world economy.
The opening salvos had come in July 2018, when Trump imposed 25% additional tariffs on $34 billion worth of Chinese imports, including industrial machinery, out of the roughly $550 billion worth of products the U.S. buys from China every year. Washington launched a second barrage the following month, targeting another $16 billion worth of imports, and escalated its attacks that September by adding $200 billion in goods to the list.
The latest and fourth batch of U.S. tariffs increased the total by $110 billion to $360 billion. (more…)
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