Title: China's Pre-Trade War Top 10 Imports and the Myth of Near-Shoring
Reviewing the consequences of the United States' trade war with China, it's clear that the situation has developed into a complex game of whack-a-mole. Initially, in an attempt to tackle the large U.S. trade deficit with China and ensure fair trade practices, tariffs were imposed. As promised, these penalties affected trade relationships with countries like Mexico and Canada, but this article focuses on the developments between the U.S. and China.
Beginning from 2018, during former President Donald Trump's tenure, heavy tariffs were placed on Chinese goods. Throughout his first term, and into President Joe Biden's presidency, these tariffs remain in effect. One of the main objectives was to address the trade deficit, while another was to dispute China's non-conformity to fair trade practices.
An analysis highlights that the U.S. deficit with China was successfully reduced by around 15% since prior to the trade war. Nevertheless, the difference has shown a significant growth in trade deficits with other countries, such as Mexico, Canada, South Korea, Taiwan, Vietnam, and Ireland. Conversely, trade deficits with countries like India, Italy, and Germany have seen moderate growth.
The newly proposed Foreign Revenue Service by former President Trump raises questions as to its true effect on trade relations. While revenues from tariffs would still come to the U.S. Treasury, the key concern is how tariffs in the supply chain will impact consumers, particularly those with low disposable income.
During this period, we can examine the top 10 U.S. imports from China in 2017. While the specific changes in these categories are not explicitly detailed, the data suggests that many of the top U.S. imports from China have reported reduced market shares as a result of the tariffs.
These reductions in market share were likely compensated by other countries, particularly Vietnam and Taiwan. The U.S.-China trade war has disrupted supply chains, and although, for the most part, China's losses in market share were absorbed by other countries, the overall effect on U.S. trade relations with China is significant.
- Despite the tariffs, the U.S. trade deficit with countries like Vietnam and Mexico has significantly increased during Biden's presidency, continued from Trump's tenure.
- The impact of the tariffs on consumers, particularly those with low disposable income, is a pressing concern in the discussion about the proposed Foreign Revenue Service by former President Trump.
- The trade war with China has led to reductions in market shares for many of the top U.S. imports, which were likely compensated by countries like Vietnam and Taiwan.
- The tariffs imposed during Trump's presidency on Chinese goods have remained in effect during Biden's term, with the aim of addressing the U.S. trade deficit and disputing China's non-conformity to fair trade practices.
