The Global Story Can Trump win a trade war with China?
Feb 5, 2025
Micky Bristow, BBC’s Asia Pacific editor, and Ritika Gupta, BBC North America business correspondent, dive deep into the escalating trade war between the U.S. and China. They discuss President Trump's reliance on tariffs and whether this can actually strengthen the American economy. The duo examines historical precedents and the complex dynamics of modern trade policies. They also explore the implications for consumers and the intertwined fates of both nations, revealing that winners in such conflicts may not be so easily identifiable.
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The Chicken Tax
- The "Chicken Tax" from the 1960s, where the US taxed light trucks in response to EU tariffs on chicken, demonstrates how tariffs work.
- This tariff war led to price increases and impacted the auto industry.
China as an Economic Threat
- Trump views China as a threat due to its large economy and substantial trade with the US.
- Trump accuses China of intellectual property theft, forced technology transfer, and currency manipulation.
Existing Tariffs on China
- Trump imposed tariffs in 2018 on various Chinese goods.
- These included items ranging from seafood and chemicals to musical instruments, but consumer electronics were initially exempt.