US-China Trade War: Who Conceded First And Why?

Aria Freeman

4 min read

Post on May 16, 2025

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Early Stages and Initial Tariffs

The US-China trade war began with the Trump administration imposing tariffs on various Chinese goods, citing unfair trade practices, intellectual property theft, and a persistent trade deficit as justifications. These actions marked a significant escalation in trade tensions between the two economic superpowers.

• Specific examples of early US tariffs: Tariffs were initially imposed on solar panels, washing machines, and steel, expanding later to encompass a vast range of goods, including agricultural products and technology components.
• China's retaliatory tariffs and their impact: China responded with its own tariffs on US goods, impacting American businesses and consumers. This tit-for-tat response led to increased prices for certain goods and disrupted supply chains.
• Economic data illustrating initial effects: Initial economic data showed a negative impact on global growth, with reduced trade volumes and uncertainty in the market. Specific sectors, particularly agriculture in the US and technology in China, felt the immediate effects.
• Initial rhetoric and negotiating positions: The initial rhetoric from both sides was highly confrontational, with accusations of unfair trade practices and threats of further escalation. Negotiations were initially strained and yielded little progress.

Escalation and the "Trade War" Phase

The initial tariffs triggered a rapid escalation, characterized by a series of tit-for-tat tariff increases. This phase intensified the economic and political costs for both nations.

• Key dates and milestones in the escalation: The escalation involved several rounds of tariff increases throughout 2018 and 2019, with each side responding to the other's actions. Specific dates and the goods affected are crucial to understanding the timeline.
• Impact on global supply chains and the broader global economy: The trade war significantly disrupted global supply chains, causing uncertainty for businesses worldwide. The overall global economic growth was negatively impacted by the reduced trade and investment.
• Political motivations driving the escalation: Political factors played a significant role in the escalation. The US aimed to pressure China to change its trade practices, while China sought to protect its economic interests and national pride.
• Specific sectors heavily impacted: Agriculture (soybeans, pork) in the US and technology (semiconductors, telecommunications equipment) in China were among the hardest-hit sectors during this escalation.

The "Phase One" Deal and Early Concessions

The "Phase One" trade deal, signed in January 2020, marked a temporary de-escalation. While both sides claimed victories, a closer analysis reveals a more nuanced picture of concessions.

• Key concessions made by China: China committed to significantly increasing its purchases of US goods, particularly agricultural products. This was presented as a major win for the US.
• Key concessions (or lack thereof) made by the US: The US reduced some existing tariffs, but many remained in place. This suggests a less significant concession from the US perspective compared to China's commitments.
• Short-term and long-term implications of the "Phase One" deal: The "Phase One" deal offered short-term relief, reducing some trade tensions. However, the long-term impact remained uncertain, with many disputes unresolved.
• Evaluation of whether the "Phase One" deal represented a significant concession by either side: While China made substantial commitments regarding purchases, the overall balance of concessions is debatable, indicating a complex negotiation with neither side fully conceding.

Post "Phase One" Developments and Long-Term Impacts

Following the "Phase One" deal, the trade relationship between the US and China continued to evolve, with ongoing negotiations and adjustments to tariffs.

• Further tariff adjustments or negotiations: While the intensity of the tariff war decreased, further adjustments and negotiations continued, reflecting the ongoing complexities of the relationship.
• Lasting economic impact on both countries: The long-term economic impact on both countries is still being assessed, with ongoing debates on the overall costs and benefits.
• Geopolitical implications and effects on global alliances: The trade war had significant geopolitical implications, affecting alliances and global economic relations.
• Biden administration's approach to US-China trade relations: The Biden administration adopted a more nuanced approach, focusing on strategic competition while seeking cooperation on specific issues. This represents a shift from the overtly confrontational approach of the Trump administration.

Conclusion

Determining who conceded "first" in the US-China trade war is a complex question. While China made significant commitments in the "Phase One" deal, the US also made concessions, albeit perhaps less visibly. The escalation and de-escalation involved a complex interplay of economic and political factors for both nations, making a simple “winner” and “loser” narrative inaccurate. The long-term implications of the trade war continue to unfold, highlighting the ongoing need for careful analysis and understanding of this pivotal period in global trade relations. To gain a deeper understanding of the complexities of international trade relations and the US-China trade war, continue your research by exploring reputable economic sources and political analyses on the topic of the US-China trade war. Understanding this historical event provides valuable context for current global trade dynamics.