 "How far will Trump's tariffs go? A timeline of US-China trade war")
China on Wednesday evening retaliated against US tariffs by announcing 84 per cent levies on goods from the United States. US President Donald Trump promptly retaliated by increasing the staggering 104 per cent tariff on Chinese imports to 125 per cent. Beijing is determined to fight Washington on its tariffs imposed by the Trump administration is what they consider ‘unfair’ trade relations. But how did we get here?
Trump’s trade dispute against China is not a new one. He had already taken several steps against Beijing during his first term as president, some which continued under the Biden administration. Upon taking office for this second term in late January, Trump promptly reignited the trade war with China.
How the US-China trade war escalated: A timeline
Early tensions and initial tariffs (2017-2018)
April 2017: Donald Trump and Chinese President Xi Jinping agree to a 100-day plan for trade talks to reduce the US trade deficit. Talks fail by July.
August 2017: The US launches an investigation into alleged Chinese intellectual property theft, estimating losses of up to $600 billion annually.
January 2018: The US imposes 30 per cent tariffs on imported solar panels, targeting China’s dominant position in the market.
April 2018: Beijing retaliates with tariffs on $3 billion worth of US goods, including agricultural products and aluminium.
June-August 2018: Both sides impose multiple rounds of tariffs, with duties affecting over $360 billion in combined trade.
May 2019: The US raises tariffs to 25 per cent from 10 per cent on $200 billion worth of Chinese goods. China responds with additional tariffs on US farm products. Washington bans Huawei from sourcing American technology, escalating the trade conflict into the tech sector.
October- December 2019: Probes begin into TikTok, Pentagon directs all staff to delete app from devices, citing security concerns.
January 2020: The US and China sign the Phase One trade deal, with China committing to buy an additional $200 billion in US goods over two years. Targets that were never met. ALSO READ | China reaches out to others for support against US as Trump adds tariffs
China trade dispute under Joe Biden (2021-2024)
October 2022: Then US President Joe Biden retains most Trump-era tariffs but expands restrictions on semiconductor sales to China.
April 2024: Biden signs bill to ban TikTok. Appeals follow. Trump later pauses the ban in Jan 2025.
May 2024: The Biden administration increases tariffs on Chinese electric vehicles, solar cells, and medical equipment, signalling continued economic tensions. ALSO READ | Trump compliments Xi Jinping, calls him 'a very smart man' amid tariff war
Liberation Day: Trump tariffs
February 4, 2025: Trump reinstates 10 per cent tariffs on all Chinese imports; Beijing retaliates with duties on US coal, gas, and agricultural machinery.
China’s State Administration for Market Regulation announces investigation into Google on suspicion of antitrust law violation.
March 4, 2025: Additional 10 per cent tariffs take effect, prompting China to raise duties on key US exports.
March 26, 2025: The US blacklists over 50 Chinese tech firms, further restricting China’s access to advanced computing technologies.
April 3, 2025: Trump declares 'Liberation Day', implementing a 34 per cent tariff on all Chinese imports.
April 4, 2025: China responds with 34 per cent tariffs on all US imports, suspends purchases of key US agricultural products, and adds 27 firms to its trade blacklist. China announces export controls of rare earth minerals, and files a lawsuit at the World Trade Organization. China also starts an anti-monopoly probe into DuPont China Group Co.
April 9, 2025: US tariffs surge to 104 per cent, China retaliates with 84 per cent tariffs.
April 10, 2025: Trump raises tariffs on Chinese imports to 125 per cent while pausing tariffs for other nations for 90 days. ALSO READ | US Treasury Secy defends China tariffs, says India important trade partner
Trump’s misconception on trade deficit
For long, Trump has insisted that the US is being taken advantage of in trade deals, fixating on reducing America’s trade deficit with China and other nations. He views trade imbalances as a sign of economic weakness, arguing that the US must impose heavy tariffs to restore ‘fair trade’. The reciprocal tariffs imposed by the Trump administration have been calculated based on the trade deficit.
However, most economists reject this premise, pointing out that a trade deficit simply reflects the difference between a country’s imports and exports, not a sign of economic failure, adding that tariffs will increase costs for US consumers.
China and EU push back on US tariffs
China has called on other nations, including India, to push back the ‘US tariff abuse’. The European Commission is also considering counter-tariffs on US goods, and global markets remain volatile, with investor confidence shaken by the unpredictability of US trade policy.
Despite Trump’s claims that these tariffs will benefit American industries, the long-term impact remains uncertain. With China promising to ‘fight till the end’ against what it described as ‘economic coercion’, the global economic landscape is likely to continue to face instability as the two superpowers continue their trade war.