Beyond China-US tariffs, officials warn of 'tsunami' of cheap Chinese goods

The world's two largest economies are raising the stakes in their battle over fair trade practices

The U.S. clarified its 125 percent tariff is in addition to an already 20 percent tariff placed on China over fentanyl

China has responded with its own 125 percent tariff on U.S. goods and added some U.S. companies to a trading blacklist

saying there are no winners in a tariff war. But some reports suggest the retaliation from China

could reach new heights in a different form, suggesting a tsunami of Chinese products

could threaten the U.S. economy. China has been expanding and strengthening its position as a top

global manufacturer. China's exports increased 13 percent in 2023 and another 17 percent last year

China increased its share of global exports from 6% in the year 2000 to now 32% and rising

This places China's factory output ahead of the combined manufacturing coming from the United States, Germany, Japan, South Korea and Britain

The New York Times reported China has transitioned away from heavily funding construction of housing to building factories to the tune of nearly $2 trillion in financing

Prior to Trump's tariffs and even second term, the Biden administration was raising concerns over China's grip on manufacturing, increasing some tariffs on electric cars and keeping tariffs on China in place from Trump's first term

Catherine Tai the U trade representative under Biden said the tsunami is coming for everyone referring to Chinese products flooding the global market

China's economy was hit hard by the COVID pandemic and has been slow to recover

So their economic strategy heavily relies on boosting production and increasing exports

But the United States, along with other countries, see their economies threatened by this strategy they refer to as the dumping of cheap Chinese goods

The European Union saying it risks their own produced goods of being priced out of the market because consumers could buy the Chinese made goods for less and many already do

According to data from the International Trade Center, the U.S. imported nearly half a trillion dollars worth of goods from China last year

One fifth of iron and steel products imported were from China. More than one fourth of all electronics, one third of its imported footwear and three quarters of toys came from China

The U.S. trade deficit with China last year was 300 billion dollars

While China has indicated the tariff tit-for-tat should be at a standstill

following its rate hike to 125 percent and the United States rate hike on China standing at 145 percent

China's overall economic strategy beyond the tariffs is something the U.S. and its allies have been watching for years

with officials indicating the tsunami is coming. Thanks for watching our news update. For more stories that matter to you

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