Trump to impose tariffs on $200B in Chinese goods

Trump to impose tariffs on $200B in Chinese goods

Wall Street Journal: Trump to impose tariffs on $200B in Chinese goods By Clare Foran, Kevin Liptak and Cristina Alesci, CNN

Updated 1149 GMT (1949 HKT) September 16, 2018

Article Summary

The journal discusses President Donald Trump’s intentions to introduce new tariffs on Chinese items. The amount of these goods is approximated to be around $200 billion. The information was released by the Wall Street Journal on September 16th last year. The timing of the announcement got many individuals by surprise since it was not anticipated. The journal disclosed that tariffs on these products would be around 10%. However, the amount was lower than the 25% which was proposed by the government.

The move was seen as a trade war between America and China. The aim was to counter China’s decision of imposing trade restrictions on America in their territory. Previously, all American corporations were supposed to turn over technology before being allowed to carry out their operations in China. Therefore, the imposition of these tariffs was expected to create trade tensions between China and the US. CNN further revealed that President Trump had instructed the current regime to enforce the trade restrictions. The journal also disclosed the implementers if theywere working on it before releasing an official announcement on the matter.

Though, the Whitehouse spokesperson Lindsay Walters avoided revealing the specifics to the newspaper. She said that President Trump’s administration would execute the plan as a way of countering China’s unhealthy trade practices.Lindsay Walters also asked China to address the contentious issues raised by America. The new tariffs imposed on Chinese items might hurt the consumers. The prices of food seasonings and dishwaters that come from China will increase. As a result, these goods may not be affordable to many customers. The US government also imposed 25% tariffs on Chinese items worth $50 billion. These taxes were aimed at punishing Beijing for engaging in intellectual property theft and unfair trade practices.

On the other hand, China responded by terming US actions as trade bullying. The nation promised to revenge by increasing taxes on American exports valued at $60 billion. Some of these products comprise of auto parts, meat, furniture, and coffee.

How the topic relates to class topics

This topic is associated with some of the class topics such as international relations. This is where two or more countries associate with each other because of cultural, political or economic interests. In this case, China’s affiliation with the US is as a result of trade.  The two countries purchase and sell goods between themselves to earn foreign exchange. This is because no nation can produce everything it requires. Therefore, the US must import some items it does not create from China. The same case applies to China that does not manufacture all the things it needs. Therefore, nations must continue trading with each other to boost their economies and create jobs for their citizens.

Additionally, the issue of tariffs arises as a result of the trade ties that exist between the two countries. The trade war that exists between the two countries can create divisions thus, leading to a lousy relationship. As a result, there is a need for immediate intervention by


The topic also has an association with international business or trade. It is where countries exchange goods and services. The nations involved should agree about the terms of trade. In this article, China exports some of their items like electronic to America. Besides, the latter distributes meat and furniture products to China. This has enabled the two countries to increase their revenues and spread their risks. Moreover, through international relations, the two countries have managed to gain from foreign exchange. Finally, the trade ties between America and China has enabled the two nations to dispose of their surplus products.

Importance of trade tariffs

The issue that has been discussed in this journal is about duties. It is a government tax imposed on all the imports entering the local market of a nation. These trade barriers have several benefits to both the US and China. First, it will encourage people to consume local products instead of imported items. Therefore, the local producers will have a guaranteed market for their goods and services. It is because of the reduced competition that is likely to emanate from importations. Secondly, the government may impose high tariffs on those items that touch on national security. The primary objective is to safeguard the nation’s borders from any external threats.

Additionally, this tax also assists in securing local employment within the nation. This is aimed at ensuring that the local firms do not collapse. As a result, it will create more job opportunities for the citizens of a nation — the measure to curb the increasing unemployment rates across the globe. Tariffs are also vital in dealing with governments that use hostile marketing strategies to control a significant market share. One of the approaches that these entities use is by flooding the market with specific products and services. In such circumstances, the state levies import taxes to safeguard the local market from unfair trade practices. Trade restrictions are also crucial to protect the surroundings. The state can discourage the importation of a particular product if it is likely to pollute the environment. In this case, any government including the US or China is justified to impose tariffs if the primary intention is to safeguard the interests of the citizens and the economy.

International business issue

The primary global business matter in this article is the trade war between America and China. Each of the two nations is working hard to damage each other’s trade by imposing quota restrictions. President Trump accused China of engaging in unfair trade practices since he was elected. It is the reason why he found it necessary to impose tariffs on Chinese products. The head of state had also made a promise of cutting down the country’s trade deficits during campaigns. Research indicates that there are several reasons why he imposed quotas on Chinese goods. First, the Chinese had commenced decreasing dependency on the dollar. One of the approaches was by denominating their trade contracts in local money.

Additionally, the trade wars began when America felt that China was exploiting it in the international trade market. As a result, the US decided to increase a 10% levy on all Chinese products. Besides, the latter retaliated by raising tariffs on American exports valued at $ 60 billion. Both nations might suffer from their trade wars in many ways. First, consumers who depend on imported products will buy them at a higher price. Those who may not have sufficient money to use on these products might miss them. Also, this can result in the flooding of goods and services in the local market. The supply of products might outweigh its demand in the market. This can lead to underconsumption of goods thus, resulting in wastage. In the long-run, both the business people and the state will end up losing a lot of revenue. Finally, trade wars can lead to a lousy relationship between nations if no action is taken to curb the situation.


In my opinion, the trade wars between America and China are dangerous for the two nations. First, it can spoil their reputation in the international market. Other countries might fear to trade with them in the future because of their actions. Although Trump claimed that China was using unfair trade practices, he never used the right approach to address the issue. He could have used diplomacy to address the problem instead of announcing his intention of increasing taxes on Chinese goods in the media outlets. The best approach could have been talking to the Chinese president on how to solve the matter. It could have given them a chance to find an amicable solution to the issue. The two nations should revisit their trade agreement and modify it to suit their interests. This is better than engaging in trade wars that might have adverse effects on their economies.

Additionally, both nations should avoid taxing those items that are scarce in their countries. The aim is to prevent artificial shortages which can make the clients suffer. America and China can also start looking for other trade partners in the future. This will assist in relieving the consumers the challenges they usually face as a result of trade wars. One of the problems is the shortage of products in the market. The two countries have an option of canceling the current trade agreement and replacing it with a fresh one that is not exploitive. The step will ensure that both nations benefit from the trade.


Work Cited

Clare Foran, Kevin Liptak and Cristina Alesci,Trump to impose tariffs on $200B in Chinese goods,2018. [Online] Available at:[Accessed 11 Feb. 2018].

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