If Donald Trump has set out to lose the trade war with China, it is difficult to determine what he would do differently. The American president’s actions will strengthen China’s geopolitical position, encourage Beijing militarily, and diminish both the global standing and economy of the United States, according to an analysis by The Atlantic.
The American economy, overwhelmed by Chinese goods
Earlier this month, Trump increased tariffs on all goods from China to 145 percent. China, in turn, responded with tariffs of 125 percent on American goods, plus more targeted measures. This is a classic trade war: two countries have engaged in an escalation of trade barriers, each with the goal of forcing the other side to back down and, at least in theory, accept certain concessions.
The Trump administration believes it holds the power in this battle. “We export about a fifth of what they export to us,” Treasury Secretary Scott Bessent recently remarked, “so this is a losing hand for them.” That view gets things backwards, according to The Atlantic. The fact that the American economy is overwhelmed by Chinese goods is a massive weakness for the US, not an advantage.
For many categories of goods, China is not only America’s top supplier, but also the dominant supplier globally, which means the US cannot simply get them from other countries. According to data collected by Jason Miller, a professor at Michigan State University specializing in supply chain management, China produces more than 70 percent of the world’s lithium-ion batteries, air conditioners, and cookware; over 80 percent of the world’s smartphones, kitchen appliances, and toys; and around 90 percent of the world’s solar panels and processed rare earths, the latter of which are crucial for cars, phones, and key military technologies.
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