IDEAS home Printed from https://ideas.repec.org/p/isu/genstf/201801010800001680.html
   My bibliography  Save this paper

What Have We Learned from China’s Past Trade Retaliation Strategies?

Author

Listed:
  • Li, Minghao
  • Zhang, Wendong
  • Hart, Chad

Abstract

Trade conflicts have recently erupted between the United States and China, and the battle over newly announced tariffs has escalated quickly. At the beginning of 2018, the United States imposed tariffs on imported solar panels and washing machines; China responded by initiating an anti-dumping investigation into U.S. sorghum. In early March, President Trump announced steel and aluminum tariffs, with China one of the primary targets. Within 2 weeks, China had responded by announcing a list of 128 U.S. products as the targets of retaliatory tariffs, effective April 2, 2018. The list included pork products and ethanol, which are of critical importance to the U.S. Midwest. As those tariffs went into effect, the U.S. Trade Representative (USTR) announced 25% tariffs on $50 billion in Chinese imports, investment restrictions, and the submission of a case to the World Trade Organization (WTO) over China’s trade practices (Trump, 2018; USTR, 2018). The Chinese government responded immediately with its own tariff package, targeting roughly $50 billion in U.S. imports, including the largest agricultural import, soybeans. For both the United States and China, tariffs on $50 billion worth of goods are scheduled to take effect in several months. The volleying may continue, as President Trump has mentioned the possibility of another round of proposed tariffs on a list of Chinese imports valued at $100 billion (Davis, 2018).

Suggested Citation

  • Li, Minghao & Zhang, Wendong & Hart, Chad, 2018. "What Have We Learned from China’s Past Trade Retaliation Strategies?," ISU General Staff Papers 201801010800001680, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genstf:201801010800001680
    as

    Download full text from publisher

    File URL: https://dr.lib.iastate.edu/server/api/core/bitstreams/e96332ea-78f2-425d-b113-b695b2af3c46/content
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jensen Brock & P. Wesley Routon, 2020. "The effect of mass shootings on the demand for guns," Southern Economic Journal, John Wiley & Sons, vol. 87(1), pages 50-69, July.
    2. Jaerim Choi & Sunghun Lim, 2023. "Tariffs, agricultural subsidies, and the 2020 US presidential election," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(4), pages 1149-1175, August.
    3. Sabala, Ethan & Devadoss, Stephen, 2021. "Analysis of Chinese Tariff on Sorghum Market under Varying Market Structures," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 47(1), January.
    4. Minghao Li & Wendong Zhang & Dermot J. Hayes, 2018. "China’s Agricultural Import Potential," Center for Agricultural and Rural Development (CARD) Publications 18-pb23, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    5. Li, Minghao & Balistreri, Edward J. & Zhang, Wendong, 2020. "The U.S.–China trade war: Tariff data and general equilibrium analysis," Journal of Asian Economics, Elsevier, vol. 69(C).
    6. Wendong Zhang, 2021. "The Case for Healthy U.S.‐China Agricultural Trade Relations despite Deglobalization Pressures," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(1), pages 225-247, March.
    7. Li, Haoran & Wan, Xibo & Zhang, Wendong, 2021. "How do Firms Respond to Long-term Political Tensions? Evidence from Chinese Food Importers," ISU General Staff Papers 202106020700001118, Iowa State University, Department of Economics.
    8. Amani Elobeid & Miguel Carriquiry & Jerome Dumortier & David Swenson & Dermot J. Hayes, 2021. "China‐U.S. trade dispute and its impact on global agricultural markets, the U.S. economy, and greenhouse gas emissions," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(3), pages 647-672, September.
    9. Chen, Le & Boyer, Christopher N. & Smith, Aaron, 2024. "Ad Hoc and Farm Bill Payments Impact on Non-Real Estate Farm Debt," 2024 Annual Meeting, July 28-30, New Orleans, LA 343617, Agricultural and Applied Economics Association.
    10. Kiran M. Sarma & Sarah L. Carthy & Katie M. Cox, 2022. "Mental disorder, psychological problems and terrorist behaviour: A systematic review and meta‐analysis," Campbell Systematic Reviews, John Wiley & Sons, vol. 18(3), September.
    11. Joseph P. Janzen & Nathan P. Hendricks, 2020. "Are Farmers Made Whole by Trade Aid?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(2), pages 205-226, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:isu:genstf:201801010800001680. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Curtis Balmer (email available below). General contact details of provider: https://edirc.repec.org/data/deiasus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.