Tariffs have become a somewhat common term in the past couple of months: but what is it and why are we at a tariff war with China? Tariffs are any tax on imported goods, and the story with China begins in February 2025.
The US increased the normal 10% tariff on Chinese goods to 20%, to which China retaliated with a 15% tariff on key US agricultural goods. This increase in tariff was supported by claims that it was intended to cripple the synthetic opioid supply chain from China. However, things heated up in April as President Trump placed a blanket 10% increase on tariffs for all imported goods. For China, this was another 10% hike on top of the already steep 20% tariff. Additionally, Trump placed tariff hikes on the US largest trading partners; this resulted in an over 34% hike on the pre-existing 20% tariff on China.
China’s retaliating by placing a 50% tariff on US goods was answered with the US President placing a 145% increase on Chinese tariffs. In the end, China placed a 125% tariff on American goods and the US placed a 145% tariff on Chinese goods. Thankfully, in May both leaders were able to speak in Geneva and come to a 90 day truce with Trump reducing the tariffs to 30% and Jinping reducing them to 10%.
Unfortunately, this 90 day reprieve has since been struck short with President Trump claiming that China has not been holding up their side of the bargain. He posted on truth social media claiming: “Everybody was happy! That is the good news!!! The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!” Ambassador Greer expanded on these claims on CNBC stating that, “”The United States did exactly what it was supposed to do and the Chinese are slow-rolling their compliance which is completely unacceptable and has to be addressed.” China in return has made their own accusations and demanded that the US “”immediately correct its erroneous actions, cease discriminatory restrictions against China and jointly uphold the consensus reached at the high-level talks in Geneva.”
Ultimately, the trade wars and negotiations are continuing as the US struggles with straining international relationships. President Trump has also faced issues domestically as the US Court of International Trade ruled that the President had overstepped his bounds with the tariffs and abused his powers. A federal appeals court has since temporarily suspended the ruling but the Supreme Court’s decision remains to be seen as the tariffs and pressure pile on.