Trump's Trade War and Reciprocal Tariffs
U.S. President Trump introduced "reciprocal tariffs" to counter what he called unfair trade practices.
The tariffs were delayed by 90 days for most countries, except China.
The goal is to pressure trade partners into making deals that favor the U.S. and reduce trade deficits.
Escalation with China
China responded strongly with equal and higher retaliatory tariffs.
Tariffs between the U.S. and China rose sharply, leading to a full-blown trade war.
Despite conflict, the U.S. exempted critical electronics from tariffs due to its reliance on imports.
Confusion within the Trump administration showed inconsistency in trade policy.
Challenges in U.S. Strategy
Trump’s team uses tariffs as a negotiating tool, but now Trump himself leads negotiations, sidelining official trade representatives.
The U.S. has a huge list of demands from countries like India — including cutting farm subsidies, ending data localization, and changing patent laws.
Such demands are unlikely to be accepted, making successful deals difficult.
China’s Counter Strategy
China reduced its trade dependence on the U.S. from 19.2% to 13.5% of total exports.
It strengthened trade ties with ASEAN, India, Russia, and others.
China controls 92% of rare earth minerals and has restricted some exports.
It is also reducing its holdings of U.S. Treasury bonds, a potential economic weapon.
Need for Global Cooperation
Trump’s aggressive trade policies risk destabilizing the global economy.
Coordinated global efforts are needed to bring the U.S. back to multilateral trade negotiations and prevent further economic disruption.
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