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China is number two and climbing fast. That’s why the US China trade war has America – and the whole world – shaking in its boots.
Economic anxiety is seeping into our daily lives. Small companies can’t run smoothly. Prices are going up. Stocks are shaking. Farm bankruptcies are on the rise.
The effects are everywhere. Around the world, no one can escape them.
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US China Trade War Timeline | |
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September 21, 2011 | The Trump worldview is spelled out in an infamous tweet: “China is neither an ally or a friend — they want to beat us and own our country.” Even before he became president, Donald Trump felt antagonistic toward China and made several statements of disapproval about its policies. |
May 26, 2016 | The US president communicates with allies and antagonists mostly in tweets. Here’s another: “We can’t continue to allow China to rape our country and that’s what they’re doing. It’s the greatest theft in the history of the world.” The China trade war isn’t even close to starting, but tensions are in the air. The future president is campaigning in Pennsylvania when that tweet hits the internet. People aren’t taking his Twitter feed seriously yet, but they should. The tweet exposes his intentions clearly. It dovetails with what he tells the audience at a rally the same day. He threatens to apply tariffs to Chinese goods under sections 201 and 301 of US trade law. |
March 31, 2017 | President Trump signs two executive orders: one for strict tariff enforcement in anti-subsidy and anti-dumping trade cases, and the other demanding a review of the US trade deficit. |
April 7, 2017 | A US China trade war is slowly becoming a distinct possibility. President Trump and Xi Jinping meet for the first time at Trump’s Mar-a-Lago resort. They agree to a 100-day plan for trade talks intended to boost US exports and reduce China’s trade surplus. |
May 22, 2017 | The US and China come to an agreement: China is to give US firms more access to energy, agriculture, and financial markets, and China is now allowed to sell cooked poultry to the US. |
August 14, 2017 | The two countries fail to take more steps to resolve trade tensions before the expiration of their 100-day trade plan. |
November 8-10, 2017 | Trump pays a visit to China to attempt more trade discussions. The meeting seems to go well. |
January 17, 2018 | The president seems to really want a China vs US trade war showdown. He gives an interview to reporters from Reuters, telling them he is planning a “big fine” for China. Analysts conclude he is referring to tariffs, which he is empowered to impose under a 1974 law authorizing retaliatory tariffs and sanctions in response to China’s alleged theft of US intellectual property. |
January 22, 2018 | Trump imposes tariffs on solar panels and washing machines from all countries except Canada. |
March 8, 2018 | Trump imposes 25% tariffs on steel and 10% on aluminum on all countries. |
March 22, 2018 | Trump files a WTO case against China for discriminatory licensing practices. He makes plans to restrict Chinese investments and influence in the US technology sector and to impose tariffs on information technology, communications technology, machinery, and aerospace products. |
April 2, 2018 | The China US trade war is almost there — China hits 128 US products with tariffs that go up to 25%. |
April 3, 2018 | Trump announces his plans to impose 25% tariffs on $50 billion worth of Chinese products. |
April 4, 2018 | China retaliates — tariffs are imposed on about $50 billion worth of American products. Trump denies the existence of any kind of trade war. In a statement, he says, “That war was lost many years ago by the foolish or incompetent people who represented the US.” |
May 15, 2018 | Chinese Vice Premier Liu He and General Secretary Xi Jinping visit Washington for trade talks. |
May 20, 2018 | China agrees to reduce America’s trade deficit by purchasing more American goods. Treasury Secretary Steven Mnuchin says that a trade war is on hold, but White House National Trade Council director Peter Navarro contradicts him, saying there is no trade war, merely a trade dispute. |
June 6, 2018 | US China trade war news is bad and getting worse — 25% tariffs are imposed on $34 billion of Chinese imports. The American government says 25% tariffs will be introduced on another $16 billion of Chinese goods after a public comment period. China doesn’t back down. It introduces retaliatory tariffs on $34 billion of US goods. |
July 10, 2018 | The American government announces its intention to introduce 10% tariffs on $200 billion of Chinese imports. |
August 1, 2018 | President Trump pushes the United States Trade Representative to raise tariffs on Chinese imports to 25% instead of 10%. |
August 8, 2018 | New tariff are finalized. The United States Trade Representative publishes a final list of 279 goods worth $16 billion. They are to be subject to 25% tariffs starting August 23. US and China trade war latest news reports show that China won’t back down. The country immediately retaliates with 25% tariffs on $16 billion of American goods. |
August 14, 2018 | China files a formal complaint to the World Trade Organization, saying that America’s tariffs on foreign solar panels violate a WTO ruling and destabilize the market. |
August 23, 2018 | The 25% tariffs from America and China go into effect. China files another complaint with the WTO, this time about the additional tariffs. |
September 17, 2018 | Trump announces more tariffs — $200 billion worth of Chinese goods are to be subject to an additional 10% starting September 24. Trump threatens additional tariffs should China retaliate. |
September 24, 2018 | The tariffs go into effect — 10% tariffs are imposed on $200 billion worth of Chinese goods, and the Trump administration announces that the tariff will increase to 25% by the end of the year. As a response, China imposes duties on $60 billion worth of American goods. |
December 1, 2018 | The trade war between the US and China shows some promise of slowing down. Trump and Xi Jinping agree to a 90-day suspension of new tariffs. Trump promises to delay new tariffs until at least March 1 while the two countries discuss trade. In turn, Xi Jinping promises to buy a substantial amount of American goods. |
February 24, 2019 | Trump agrees to delay the new tariffs further. The deadline is extended indefinitely and the tariffs are left at 10%. |
May 5, 2019 | Trump announces via tweet that he intends to raise tariffs. |
May 8, 2019 | The Trump administration convinces the president that the government can’t make formal announcements over Twitter. The administration makes a public statement that it intends to hike the tariffs on May 10 because, it says, China backtracked on previously agreed-upon deals. |
May 10, 2019 | The US China trade war latest action: Tariffs are hiked to 25% on $200 billion worth of Chinese goods. |
June 18, 2019 | Donald Trump and Xi Jinping talk over the phone and agree to more trade talks in an attempt to get the situation under control. |
June 29, 2019 | Trump and Xi attend the G20 Summit in Osaka. Trump announces a truce and says there won’t be any more additional tariffs for the time being. He agrees to ease restrictions on Chinese telecom giant Huawei. He also makes a claim: “China is going to be buying a tremendous amount of food and agricultural product, and they’re going to start that very soon, almost immediately.” China disputes making such a commitment. The purchases are never made. |
August 1, 2019 | Trade negotiations stall. Trump says he wants to introduce a 10% tariff on $300 billion worth of Chinese goods in addition to the 25% tariff on $250 billion worth of Chinese goods that’s already in effect. He says this is because China is not following through on a supposed promise to buy food and agricultural products. Trump says trade talks will continue despite the tariffs and that they could be introduced gradually. |
August 5, 2019 | US China trade war tensions heat up past the boiling point. China responds to Trump’s threats by halting purchases of American agricultural products entirely and by devaluing the yuan past its longstanding 7-yuan-per-dollar level. Equity markets experience a sharp fall. The US Treasury calls China a “currency manipulator.” The US dollar drops in value and gold rises to a six-year high. |
August 6, 2019 | The Chinese central bank, the People’s Bank of China, claims that China did not and will not use the yuan as a tool to respond to trade war threats. The American government announces that trade talks are planned in September and says that tariff plans could be changed if the talks go well. The administration says it wants to resolve the China US trade war as soon as possible. |
August 9, 2019 | Trump says he’s not ready to make a deal with China. He suggests he might cancel or postpone a trade deal in September and he says America will refrain from doing business with Huawei. This is in direct opposition to his promise to Xi Jinping. Later, a White House official clarifies the president’s statement. Apparently, the president was referring to government purchases of Huawei equipment, not sales requests from US companies. |
August 13, 2019 | Trump delays some tariffs. This means that $112 billion worth are still to take effect on September 1, but an additional $160 billion in duties won’t be imposed until December. The administration says the tariffs are postponed to avoid harming the American consumer during the Christmas season. |
August 23, 2019 | All about the US China trade war seems to be going downhill. China announces retaliation on $75 billion worth of American goods, effective September 1. In response, Trump issues an order to American companies via Twitter: “Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA.” The order is without any legal precedent. Trump says tariffs will be raised from 25% to 30% on the existing $250 billion worth of Chinese goods and from 10% to 15% on the remaining $300 billion worth of goods. The first round of new tariffs is supposed to go into effect on October 1, and the second on December 15. |
August 24–August 26, 2019 | The G7 Summit. Asked about whether there will be new tariff hikes, Donald Trump says, “Yeah, sure, why not? Might as well. Might as well. I have second thoughts about everything.” The sentence summarizes the general sentiment of the G7 Summit. The president changes his mind about whether he wants to introduce more tariffs several times during the summit and leaves the rest of the world leaders largely confused. When it comes to the US China trade war, President Trump gives no clear indications of the direction he wants to take. |
September 1, 2019 | Previously announced tariffs go into effect. There’s a 15% tariff on more than $112 worth of Chinese goods, which means that two-thirds of Chinese goods coming into America are now subject to duties. China imposes 5%-10% tariffs on one-third of 5,078 goods from America. The remainder are set to be subject to duties starting December 15. |
September 4, 2019 | The United States Trade Representative and Chinese state media announce there will be new trade talks in mid-September. |
September 11, 2019 | China announces it will exempt 16 types of American products from tariffs for one year. Trump announces that he will delay tariff increases from October 1 to October 15. |
September 20, 2019 | More US and China trade news — America exempts around 400 products from tariffs. The war is rough on a multitude of US companies. |
October 7, 2019 | America adds 28 companies in China to an export blacklist. The reason stated is a violation of human rights. The Chinese president says he plans to retaliate. |
October 10-29, 2019 | The 13th round of negotiations starts. Trump, Lighthizer, and Mnuchin talk to the Chinese Vice Premier Liu He and agree to take steps to ease tensions. The terms are still not clear and they’re not put to paper. |
November 29, 2019 | The Trump war with China shows no end in sight, but the President promises he will shield dozens of products from tariffs. This is seen as a political move to ease the concerns of Trump’s voters before the 2020 election. |