US-China Trade War Effects on The Economy of The United States

Abstract

Several significant imports, including solar panels, washing machines, steel, and aluminum, saw tariff increases in the United States at the beginning of 2018.It soon became clear that China was the target of US trade restrictions, despite the fact that these tariffs did not discriminate based on origin. The United States then increased tariffs on tens of thousands of Chinese goods in 2018 and 2019, concentrating on imports worth approximately $350 billion. China targeted US shipments worth approximately $100 billion as a response to numerous tax waves. The two sides agreed to stop increasing tariffs in January 2020; however, as of 2021, the existing tariffs were still in effect. The trade war stands out as one of the broadest and most significant shifts in US trade policy, despite the fact that the United States has historically been at the forefront of efforts to promote global tariff reductions. As the trade war progressed, economists attempted to assess its economic effects. A timeline of the major events and a summary of the reasons for the trade war from experts and analysts are included in this article. The effects of the trade war on the US economy are also discussed in this article. The conclusion suggests that the conflict has already had different effects on the US economy.