Top 10 items traded between US and China as Donald Trump hit with 84% 'Liberation Day' revenge tariffs
China has hit back at the US, after tariffs of 104 percent on Chinese exports came into effect on Wednesday (9 April) - and some items are about to become a whole lot more expensive.
What are tariffs?
Just for a quick refresher, a tariff is a kind of tax an importer pays on things brought in from other countries. For example, if someone in the US wanted to buy something from the UK, then they'd have to pay money the US government 10 percent of the item's value (unless it's a car, in which case it's 25 percent).
That money is going to be paid by the person in the US, but tariffs hurt other countries too, as the person importing them will likely increase the price to cover their own costs and pass the expense onto the person who ultimately ends up buying it.
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Essentially, the tariffs mean that imported goods in the US will now be more expensive, which is a great way to boost purchases of domestic products, but frustrating for the average American looking to buy groceries and daily essentials.
How will US tariffs impact China?
Donald Trump said his tariffs were designed to close trade deficits with foreign countries, when it comes to physical goods, during his 'Liberation Day' announcement on 2 April.
However, the Chinese commerce ministry argued the US's 'increase in tariffs will not solve its own problems'.
“Instead, it will trigger sharp fluctuations in financial markets, push up US inflation pressure, weaken the US industrial base and increase the risk of a US economic recession, which will ultimately only backfire on itself,” they said.
As a result, China has now raised tariffs to 84 percent on goods coming from the US.
“If the US insists on further escalating its economic and trade restrictions, China has the firm will and abundant means to take necessary countermeasures and fight to the end,” the ministry of commerce added.
Top 10 items traded between US and China
According to the US International Trade Commission, here are the top 10 traded items between the US and China:
US exports to China
• Soybeans - 9%
• Aircraft and engines - 8%
• Integrated circuits - 4%
• Pharmaceuticals - 4%
• Petroleum - 3%
China exports to US
• Smartphones - 9%
• Laptops - 7%
• Batteries - 3%
• Toys - 2%
• Telecoms equipment - 2%
Earlier this week, President Trump said that the raise in tariffs was benefitting the US, calling China 'the biggest abuser of them all'.
"Oil prices are down, interest rates are down (the slow moving Fed should cut rates!), food prices are down, there is NO INFLATION, and the long time abused USA is bringing in Billions of Dollars a week from the abusing countries on Tariffs that are already in place," he wrote on X on Monday (7 April).
"This is despite the fact that the biggest abuser of them all, China, whose markets are crashing, just raised its Tariffs by 34%, on top of its long term ridiculously high Tariffs (Plus!), not acknowledging my warning for abusing countries not to retaliate."
Well in 2024, the trade in goods between the two power houses raised an eye-watering $585bn (£429bn).
But it seems the US imported a lot more from China ($440bn) compared with how much their opposition imported from America ($145bn).
"They’ve made enough, for decades, taking advantage of the Good OL’ USA! Our past “leaders” are to blame for allowing this, and so much else, to happen to our Country. MAKE AMERICA GREAT AGAIN!" Trump added.
Additional words by Joe Harker
Topics: US News, Politics, World News, Donald Trump, China
Anish Vij