The Key Facts and Causes of the U.S.-China Trade War

The Key Facts and Causes of the U.S.-China Trade War
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Due Date The U.S.-China trade war started by Donald Trump in April 2018 represents an economically shocking decision that drew significant global attention. Critics of the decisions taken by the two nations after this event indicate that it has gradually triggered far-reaching consequences for both nations, creating a lose-lose situation (Moosa et al. 2020, p. 1). Its magnitude illustrates the importance of investigating the key facts associated with the economic conflict and the primary causes of the trade war. One of the key facts about this conflict started with the U.S. president imposing a 25% tariff on indeterminate imports from China, targeting approximately $150 billion (Hosain and Hosain 2019, p. 21. This move sought to close the U.S. versus China bilateral trade deficit. Chen et al. (2019, p. 904) indicate that China retaliated immediately by imposing a comparable rate for Chinese bound imports from the U.S. This decision prompted the U.S. government to levy another 25% tariff, which the Chinese administration matched by a similar percentage in its response toward American goods. These events led to a truce in December 2018 to find a feasible agreement. The primary causes date to the U.S.’s failure to recognize China’s market economy status in 2017. As a result, Kapustina et al. (2020, p. 5) indicate that the first cause was to minimize the bilateral trade deficit and revert American jobs to its homeland since China ...