The United States and China have been in a good relationship when it comes to them leading their countries, but it would all go very bad when they started a small trade war. They were facing back-to-back, and it was unclear who would win this controversial trade war

This is a brief explanation of how this trade war started from bad to good. Why did it immediately escalate? What is the solution? And who wins this small trade war?

Lots of people are outraged as the President has changed the way the nation is going, some of these things that the president is doing are in between the middle of good and bad. But one thing caught the media and major businesses in fear.

On April 2nd, President Donald Trump announced the imposition of reciprocal tariffs on nearly all countries. But 1 country refuses to go on with the tariffs, and it is no other than China, their biggest export in the manufacturing field. Most of the products you see every day are made in China. 

As a result, President Donald Trump has been significantly increasing the percentage every time the Chinese president Xi Jinping refuses to take action. China originally went from 34% and went straight to 84% and more up to 125% on all imported goods such as food, luxury clothing, designer shoes, electronics such as iPhones, and even motor vehicles and car parts made in China and Hong Kong.

Not only did it affect those manufactured goods, but it also affected the stock market and investment. Major companies including Apple, Amazon, Nike, and others had a significant decrease in stocks ever since the tariffs, with some going below 10%. This big stock market crash lasted for 3 days. Lots of online users think that we will have another recession just like the Great Depression in 1922.

Then on April 9th, the president announced a 90-day pause on all tariffs for all countries, meaning that prices of goods made from different countries will not go high. As for China, Trump raised the percentage all the way up to 145% on all imports.

China would later bite back on the next day (April 10th), as they restricted Hollywood imports from the US as a response to the imposed tariffs. Things were going too far that week, and we heard less news until the next month.

Around May 11th, China would start to negotiate with the US to pause the tariffs. It took them a while, but the two leaders have agreed to stop fighting.

Then on May 12th, President Trump and Chinese President Xi Jinping officially made a truce and agreed to temporarily reduce the tariffs to 30% for 90 days as well as Chinese imports will be down 10% from 125%. China has agreed to roll back on other non-tariff measures.

The stock market was rising steadily again after tariffs were temporarily paused, and it was a relief for all of the big companies that lost a significant percentage of their stock price.

In my opinion, the pause was really necessary because it gives lots of companies some time to prepare for when the 90-day pause expires. The stock market will also be very steady in rising until the tariffs go into effect. I also think there was no need to start doing tariffs again since it could ruin the economy in every state.

What is your opinion about the tariffs? Will they impact the country? Tell us in the comments!