US-China Trade War Escalates with New Tariffs and Export Controls

BEIJING, Nov 6 (Reuters) – The trade conflict between the United States and China intensified recently as U.S. President Trump announced new tariffs on billions of dollars worth of Chinese imports. This move aims to reduce the trade deficit, restore lost manufacturing, and combat the fentanyl trade.

On November 5, China retaliated by imposing tariffs on U.S. imports, affecting agricultural products with duties rising to 15% starting from November 10. Despite this, China announced it would ease some restrictions on U.S. optical fiber imports while maintaining tariffs on soybeans at 13%.

Earlier, on October 30, talks between Trump and Chinese President Xi Jinping in South Korea resulted in mutual concessions. Trump agreed to lower tariffs in exchange for China committing to crack down on the fentanyl trade and resuming U.S. soybean purchases.

In a series of developments throughout October, U.S. Trade Representative Jamieson Greer expressed concerns over China’s export controls on crucial minerals, while Apple CEO Tim Cook committed to increasing investments in China.

Events in the previous months, such as new tariffs and export bans, exemplify the ongoing tug-of-war between the two nations. As of early October, Trump introduced sweeping tariffs of 100% on certain Chinese goods while also enforcing new export regulations affecting technology-sensitive items.

Trade negotiations continue, particularly regarding the upcoming APEC Summit, as both nations grapple with balancing economic diplomacy against protectionist policies. While the U.S. aims to bolster its manufacturing and reduce dependence on Chinese goods, China emphasizes its strategic importance in the global supply chain.

The outcomes of these trade discussions could have significant ramifications for international relations and global markets, particularly in sectors reliant on the trade between the two economic giants.