US vs China trade war

Question 1

Origins

Answer 1

• Trump administration introduced tariffs on $363bn worth of Chinese imports
• aimed at preventing dumping, protecting domestic jobs and reducing the trade deficit

Question 2

Trump tariffs 2025

Answer 2

• 25% tariffs on all steel and aluminium
• 25% on cars and car parts
• reciprocal tariffs up to 50%
• 145% tariffs on Chinese goods due to retaliatory response

Question 3

Consequences

Answer 3

• China 125% retaliatory tariff
• supply side shock for USA
• demand side shock for China
• 80,000 steel industry jobs from 84,000
• regressive effects on US consumers