The U.S.-China Trade Relationship: What’s Behind the Competition?

(Council on Foreign Relations) The United States and China, the world’s two biggest economies, are facing considerable trade tensions, with implications for the global economy, supply chains, and trading system. President Donald Trump imposed tariffs on China in 2018, many of which were maintained by President Joe Biden. Those tariffs became steeper under Trump’s second term, while Beijing retaliated with its own levies and strict export controls on rare earths and other materials critical for technology development. Although the U.S. Supreme Court decision struck down some of Trump’s emergency act tariffs, the bulk of the U.S.-China trade war tariffs are still in place. The May Trump-Xi summit in Beijing extended a fragile détente between the two countries but failed to produce a comprehensive deal to restore normal trade relations. – The U.S.-China Trade Relationship: What’s Behind the Competition? | Council on Foreign Relations