As diplomatic and economic relations between the United States of America and the People's Republic of China rapidly deteriorate, both countries are relentlessly attaching tariffs on imports from the other country.
On July 6th, Fox News reported that the US slapped tariffs on $34 billion worth of Chinese imports and China immediately retaliated by slapping tariffs on an equal value of imports from the US. On July 11th, CNN Money reported that the White House has prepared a list of over $200 billion worth of Chinese imports, ranging from apples to electric vehicle batteries, to be subject to another 10% tariff.
If China also retaliates on these tariffs, nearly half a trillion dollars worth of trade between the two commercial heavyweights will be severely injured.
Exactly who benefits from this conflict? In the short term, basically nobody. Every American company that exports goods to China will see drops in revenue and productivity due to Chinese tariffs, and American consumers will have to pay significantly higher prices for goods made in China due to American tariffs. Even the small rural farmers of the Midwest, one of President Donald Trump's most fundamental voter bases, will see their profits decline in China as China will no doubt begin to use its own farmers to create its own agricultural production independent of a demand for US goods.
The only possible long-term benefit of this trade war would happen if China suddenly relents on its retaliatory tariffs, which would decrease the US's trade deficit with China. However, that appears to be highly unlikely since, when faced with the question of whether or not China will accept US tariffs, He Weiwen, the vice president of Beijing's Center for China and Globalization, defiantly stated: ''That's impossible. China won't accept that,'' also adding that ''what happens next depends on the United States. China will be prepared to follow suit.''
Moving beyond the economic terminology of tariffs and supply and demand, one of the most prominent concerns for the American people is the availability of jobs. Mark Zandi, the chief economist for the financial services company Moody's Analytics, estimated that this trade war could cost the US approximately 700,000 jobs in virtually every sector, from manufacturing to agriculture. This would occur mainly because American corporations will decide to move their facilities overseas to avoid Chinese tariffs on US goods.
Finally, the White House's role in creating this trade war presents a political nightmare for Donald Trump, since even his own party refuses to support his actions. On July 11th, 49 Democrats and 39 Republicans came together to issue a sharp rebuke of Trump's trade policies and call for Congress to have an increased role in international trade legislation.
Liberal politicians are against this trade conflict as it hurts middle and lower class consumers with increased prices, and conservative politicians also oppose the conflict due to the harm it does to American businesses and farmers. Since Donald Trump started this debacle, he must stop it. He should repeal his harmful trade restrictions before it is too late and the US begins to irreversibly lose jobs, revenue, and international prestige.