#TariffsPause

The US-China trade war has seen its fair share of twists and turns. Here's what's been happening¹:

- *Tariff Escalation*: In 2018, President Donald Trump launched a trade war with China, imposing tariffs on Chinese imports. China retaliated with its own tariffs on US goods.

- *Trade Tensions*: The trade war escalated under Trump's second term, with baseline tariffs on Chinese imports raised to an effective 145%.

- *Current Status*: Although Joe Biden won the 2020 presidential election, tensions remain high. Biden's administration has maintained significant restrictions on China, particularly regarding semiconductor technology sales.

- *Impact*: The trade war has led to increased costs for consumers and businesses, disrupting global supply chains.

*Key Issues Driving the Trade War*

- *Intellectual Property*: The US has long been concerned about China's handling of intellectual property rights, particularly forced technology transfers.

- *State-Owned Enterprises*: China's SOEs have been a point of contention, with the US arguing they receive unfair advantages.

- *Cybersecurity*: The US has accused China of engaging in cyber-enabled theft of US intellectual property.

- *Market Access*: The US has pushed for greater market access for its companies in China.

*Potential Next Steps*

- *Diplomatic Efforts*: Both countries have engaged in diplomatic talks to address trade issues, but progress has been slow.

- *Tariff Adjustments*: There may be adjustments to tariffs, but significant changes are uncertain without a comprehensive trade deal.

- *Global Implications*: The US-China trade war has far-reaching implications for the global economy, influencing trade policies and economic relationships worldwide.