China’s Tariff Landscape Before the Trump Administration- A Pre-2020 Retrospective

What was China’s Tariffs Before Trump?

China, as the world’s second-largest economy, has always been a significant player in international trade. The country’s tariffs, which are essentially taxes imposed on imported goods, have been a subject of much discussion and negotiation. Before the Trump administration, China’s tariffs were relatively low and followed a specific pattern, reflecting both the country’s economic development and its trade policies.

Low Tariffs and Trade Policies

Prior to the Trump administration, China’s tariffs were generally low, averaging around 9.8% in 2017. This was lower than the global average of 10.4% and reflected the country’s commitment to reducing trade barriers. China’s trade policies were designed to promote economic growth and development, with a focus on attracting foreign investment and encouraging the export of goods.

Specific Tariffs and Their Impact

China’s tariffs were structured in a way that favored certain industries and products over others. For instance, the country imposed higher tariffs on agricultural products, such as pork and soybeans, which were crucial for Chinese consumers. This was done to protect domestic agriculture and ensure food security.

On the other hand, China had lower tariffs on manufactured goods, such as electronics and machinery, which were essential for the country’s industrial development. This allowed Chinese manufacturers to import raw materials and components at a lower cost, making it easier for them to produce and export finished goods.

Impact of Trade Agreements

China’s tariffs were also influenced by trade agreements with other countries. For example, the China-US Trade and Technology Cooperation Committee (TTC) was established in 2018 to promote trade and technology cooperation between the two nations. Under this agreement, China agreed to reduce tariffs on certain goods, such as cars and aircraft, in exchange for access to the US market.

Shift in Trade Policies

The Trump administration’s approach to trade, particularly with China, marked a significant shift in US-China relations. President Trump accused China of unfair trade practices, including intellectual property theft, forced technology transfers, and massive trade deficits. In response, he imposed tariffs on Chinese goods, which led to a trade war between the two countries.

Conclusion

Before the Trump administration, China’s tariffs were relatively low and followed a specific pattern designed to promote economic growth and development. The country’s trade policies were influenced by both domestic needs and international agreements. However, the Trump administration’s approach to trade with China has led to a significant shift in the relationship between the two nations, with implications for global trade and economic stability.