How has the US-China trade war affected the US economy?

Between July 2018 and August 2019, the United States announced plans to impose tariffs on more than $550 billion of Chinese products, and China retaliated with tariffs on more than $185 billion of U.S. goods. The trade war caused economic pain on both sides and led to diversion of trade flows away from both China and the United States.

Is the China-US trade war a result of geopolitical rivalry?

Yet, it is a result of structural geopolitical rivalries and will strike even more forcefully after the ongoing crisis is over. The China-U.S. trade war is a tool for the rivalry between the world’s greatest economic powers –– the United States and China –– poised to dominate the first half of the 21st century.

How big is the US trade deficit with China?

Meanwhile, the U.S. goods trade deficit with China continued to grow, reaching a record $419.2 billion in 2018. By 2019, the trade deficit had shrunk to $345 billion, roughly the same level as 2016, largely as a result of reduced trade flows. It should be noted that, while the U.S. deficit with China decreased, its overall trade deficit did not.

How much did the US trade with China shrink in 2018?

In 2018–2019, the bilateral trade between the United States and China dropped by some $100 billion, with the former’s having been able to narrow its trade deficit with the Asian country by $75 billion.

What does the US-China trade deal mean for the world?

The US and China signed a phase one trade deal in January 2020, with China committing to buy US$200 billion of goods and services over the next two years Register and follow to be notified the next time content from US-China Trade War is published.

Is the US economy under the cosh from the trade war?

Both economies are under the cosh from the trade war, but the US seems to be faring worse based on recent trade performance. According to China Customs data, the three-month moving average for US exports to China is down dramatically by 26 per cent year on year, compared with China’s exports to the US running 13 per cent below a year ago.

What is the relationship between China and the United States?

The United States and China are the two largest economies in the world. Chinese foreign trade grew rapidly after its ascension into the World Trade Organisation in 2001, with bilateral trade between the US and China almost US$559 billion in 2019.