Thursday, September 25, 2025

America's Tariffs Not Hurting Chinese Trade; Thriving Instead

Since Trump's return to office, he has been looking to isolate China in the trade world. He called them America's biggest trade rival but his results have been somewhat mixed. In the process of trying to isolate China, they have retaliated with their own tariffs in other parts of the world including the EU, India, Malaysia and Vietnam. 

China has began to shift their production to ASEAN (Association of South-East Asian Nations) and this has led to exports to the U.S. to decrease. Overall trade is also up in Europe, Africa, and Southeast Asia, which is led by Belt and Road projects. Not only is it not going all so well for the U.S. but a continuing down this path could very well hurt its global position in trade. 

If you were making policies, would you focus more on protecting American industries or on cooperating with China? 

https://www.economist.com/finance-and-economics/2025/09/09/chinese-trade-is-thriving-despite-americas-attacks

3 comments:

  1. This is very similar to the article I read about U.S. farmer's who have a large supply of crops, but no demand from China- leaving producers with a no cash flow. I think that in order to protect American industries, it is necessary to find a solution with China. Businesses are seemingly being pushed to produce in the U.S., but it is difficult to see the financial incentive or benefit in this.

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  2. I may be wrong, but didn't we talk about in class how the U.S. isn't as affected by trade like we would think it is and it is more important in like Germany?

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  3. I think we need to find a balance between protecting American industries and cooperating with China. Completely isolating China is going to backfire. I would focus on targeted protections for critical sectors while pursuing trade agreements and cooperation to maintain the U.S.’s global trade position.

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