U.S.-China trade

Beijing recognizes the U.S. is here to stay as a global power – but its relative advantage is being eroded by the tariffs, and political support in the U.S. is wearing thin.

Before the tariffs, businesses took advantage of a public comment period to lay out the dangers of a trade war. It seems clear that the Trump administration didn’t take their concerns into account.

The tariffs imposed on China’s exporters will likely be paid by American consumers. 

Insights from Rodney Faraon.

International trade, with the U.S. and China at the forefront, is undergoing a paradigmatic shift away from free trade and toward an aggressive form of neo-mercantilism.

If China is able to seize the opportunity to revitalize its domestic economy and invigorate the multilateral system, Trump’s trade war 2.0 could end up a strategic gift to Beijing. 

Insights from Bradley Martin. 

Planned reforms could indirectly help balance China-U.S. trade by boosting consumption, thereby reducing political hostility between the two major powers. 

The targeted and restrained nature of the latest round of tariffs suggests the U.S. and China are unlikely to engage in a full-scale trade war this year. But the situation remains precarious. 

As China's overcapacity becomes a buzzword, restrictions on Chinese electric vehicles are expected. However, the objectives, approaches, and anticipated outcomes differ between Europe and the U.S.

While there are important similarities between the Biden and Trump approaches toward China, there are also stark and meaningful differences.

Elizabeth O’Brien Ingleson discusses the intersecting economic interests in China and the U.S. that transformed global trade starting in the 1970s.