US-China Dispute: The US-China dispute(Trade) is escalating with competing retaliatory tariffs. Relations between the two countries are deteriorating day by day. Trump has postponed the implementation of tariff increases on more than 75 countries except China, mainly due to concerns such as the fear of a trade war, the collapse of global markets, and the threat of a looming global recession. However, there is now a debate about why Trump is acting so harshly on China.

The trade war between the United States (USA) and China is intensifying and turning into a cold war. As the US President imposes retaliatory tariffs, China is also increasing tariffs in return. The two countries are competing in this regard. There are concerns about where these developments will lead. At the same time, Trump announced on Wednesday that he is postponing tariffs on all countries except China for 90 days. He imposed more tariffs on China, increasing the total to 125 percent. He announced that the tariffs on Chinese imports to the United States would come into effect immediately. However, why did Trump target only China? What will be the impact of this? What are the reasons for the US-China Dispute?  How long will this US-China Dispute continue?

US-China exports
China is the world’s largest exporter with exports of about $3.42 trillion. The majority of this is exported to the United States. In the case of the United States, its exports in the fiscal year 2024 are worth about $1.71 trillion. The United States is the second largest exporter in the world after China.

US-China bilateral trade
The value of China-US trade in 2024 is estimated to be about 582.4 billion US dollars. In 2024, US exports of goods to China are 143.5 billion dollars. Imports from China total 438.9 billion dollars. That is, the trade deficit with China is 295.4 billion dollars. Trump imposed the latest tariffs to pressure China to buy industrial and agricultural goods and products to cover this deficit. The US imports more goods than it exports to China. This trade deficit has become a long-term problem. It has been a contentious issue in trade relations between the two countries. Recent Trump trade policies have aimed to reduce this trade deficit, especially with retaliatory tariffs.

US-China trade relations
Interdependence: Despite trade tensions, the US and China have deep economic ties. China is a major supplier of consumer goods and products to the US. The US is a key market for some Chinese goods. It is a key exporter of certain goods and products.

Trade War, Tariffs: The US and China have been engaged in a trade war by imposing tariffs on each other since 2018. Tensions between the two countries have intensified since Trump took office for a second term.

Strategic Competition: The United States views its relationship with China in terms of strategic competition, including unacceptable trade practices, intellectual property theft, and concerns about national security.

China’s economy vs America’s economy
In 2024, the US GDP will be $29.2 trillion. At the same time, China’s GDP will be about $19 trillion. However, in terms of purchasing power parity, China’s economy is larger. It is estimated to be about $39.44 trillion.

GDP Growth Rate: China’s economy grew faster (about 5.0%) in 2024 than the US (about 2.8%). However, China’s growth rate has slowed compared to past averages. China relies heavily on exports and manufacturing.

Per capita income: There is a huge gap in per capita income between China and the US. While the US has $86,000, China has $13,445.

Unemployment rate: The unemployment rate in both countries is relatively low. It is about 4% in the US and about 5% in China.

China and America’s main exports
While electrical and electronic equipment, machinery, nuclear reactors, boilers, furniture, lighting, building materials, toys, sports equipment, and plastics are exported from China, the United States exports soybeans, crude oil, petroleum gas, cars, and integrated circuits.

Debt burden on both countries
The United States ranks first in the world in terms of national debt. However, China’s debt has also been growing significantly in recent years, including government, corporate, and household debt. However, its debt-to-GDP ratio is different from that of the United States.

Trump tariffs effect
High tariffs are expected to negatively impact both economies by increasing business and consumer costs, reducing competitiveness, and creating uncertainty. Despite ongoing tensions, efforts are underway to negotiate. However, the path to resolving the trade dispute remains uncertain.

America: High tariffs on Chinese goods will hurt American businesses and consumers. This will lead to inflation and reduce the competitiveness of US companies that rely on Chinese imports. China’s retaliatory tariffs will put a heavy burden on US exporters, especially the agricultural sector.

China: US tariffs will reduce demand for Chinese goods. This will hurt the manufacturing sector and economic growth. The trade war will also create uncertainty for Chinese businesses. It could lead to supply chain adjustments.

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