The US and China trade talks resumed last week to check in how the Phase One agreement in February has played out. The pandemic shook the world and the trade talks couldn’t continue since February and it was especially hard for China to keep their end of the bargain and purchase a set amount of US goods. With increasing tensions over Chinese apps like TikTok and WeChat, the negotiating turf is not very ideal.
The Phase One deal shows that under the initial agreement in early 2020, a large part of bilateral tariffs is still in place. China and the US lowered some tariffs but have been granting exceptions to the traders on a case-by-case basis.
The trade war was at its height in late 2019 when the US levied tariffs of 15 percent on $300 billion and 30 percent on another $250 billion of Chinese goods. China also retaliated by imposing a tax of 5 to 10 percent on $75 billion of American goods and 20 to 25 percent on American goods worth $110 billion.
This back and forth trade war can be traced back to 2018 when President Trump announced tariffs on solar panels and later on steel and aluminum for all countries. China then retaliated with tariffs of $3 billion worth of US imports.
Take a look at the following infographic for the whole timeline of the US-China trade war
Infographic by: statista.com