Protectionism Context Flashcards
(8 cards)
What is the value of US tariffs on Chinese imports
$363bn worth of Chinese imports
Why has Donald Trump imposed tariffs?
Dumping, unemployment, trade deficit reduction, political leverage(?)
What were Biden’s tariffs on China?
Increase tariffs with China, notably on climate industries imposing tariffs of 100% on Chinese electric cars, 25% tariffs on average, 50% tariffs on lithium ion batteries (batteries that go into EVs), 50% tariffs on semi- conductor chips from China
Why did Biden want to protect climate industries?
Infant industry argument on climate industries imposing tariffs, unfair export subsidies by China and competitive devaluations
What are Donald Trump’s tariffs?
25% tariffs on all steel and aluminium imports from anywhere in the world, 25% on all cars and car parts on all countries around the world, reciprocal tariffs on countries around the world with a baseline tariff of 10%, and 145% on China- but given himself a 90 day window for trade talks
How have China retaliated?
125% tariffs on all US imports coming into China given USA’s 145% tariffs on China- trade-war
Other reasons for Trump’s tariffs?
Raise government revenue, encourage inward investment (if corporations set up within the US he claims they won’t face tariffs), to reduce budget deficit/ National Debt and fund tax cuts for middle class earners
Chinese retaliation on Trump’s tariffs 2018/19
Has led to retaliation- China immediately retaliated- in 2018/19 they imposed higher tariffs of 25% on average compared to USA’s 15% on average- targeted sensitive export industries (US soybean industry (no1 value export for the USA), targeted US car and oil industry which contribute heavily to US economic growth, Levi Jeans, Harley Davidson Bikes, Bourbon whiskey dragged into the trade war
