In 2018, former U.S. President Donald Trump initiated a prompt and contentious trade war with China that included tariffs on hundreds of billions of Chinese products, and thereafter, imposed additional tariffs on hundreds of billions of Chinese goods. This was more than just a tariff war; it was the initial move of a profoundly strategic economic focus that reshaped international trade.
This battle transcended raw materials like steel or soybeans. It was a chess game for control and command of geopolitical climate.
The “America First” Strategy
Trump’s administration argued that for too long, the U.S. had been losing:
- Uncontrolled trade practices from China
- Vertical growth in foreign trade deals (trade deficits)
- Trade deals involving intellectual resources and technology
And the solution formulated was:
The United States commenced imposing tariffs between 10 to 25 percent on thousands of products from China like consumer electronics, steel, machinery, and machinery consumer goods. In response, China emerged with counter tariffs. Economies started to tremble. And everyone throughout the globe initiated paying attention.
The Ripple Effect around the World
The United States and China were trying to give each other a ‘hard time’ when a new situation unfolded.
- Supply chains were no longer single sourced by global companies.
- Wasn’t expecting that emerging markets would switch due to the boost in exports to the US.
- Trade agreements and conflicts began forming worldwide.
Countries acted fast when advised, together realizing it is not just a moment of disruption, seizing the opportunity.
The Real Game
In a new article of this series, we will analyze:
- The countries that won, looked deep and untangled ‘why they won some, while other appeared empty.
- Why these global actions showcased so much power: how intimidation and threat showed there were areas for preparedness along with vulnerability’.
- The shock to US banks from the economic imbalance towards undermining public spending.
Some nations shouted.
Others negotiated.
A few stayed quiet—and played it brilliantly.
