Over the past month, the US president has initiated what he refers to as “Liberation Day for the American economy,” marked by the imposition of reciprocal tariffs on nations maintaining trade surpluses with the United States. The president asserts that these countries have exploited the US economy, necessitating a firm response.

Read also: US-China Trade War Update: What Businesses Need to Know

This “Great American fight back” aims to restore America’s position as a global superpower, following what the administration views as four unproductive years under the Biden presidency. The United States aspires to become a global manufacturing center, producing goods for worldwide distribution.

However, questions remain regarding the feasibility of this objective. With China’s growing influence and the US facing its own economic challenges, the ultimate resolution of this trade war remains uncertain.

Official Chinese data indicates a significant downturn, with total e-commerce shipping to the US dropping by 65% in volume during the first three months of the year, according to The Guardian. This decline suggests that Chinese companies are struggling to maintain sales to the United States under the weight of increased tariffs, leading to reduced revenues for e-commerce businesses and potential job losses in manufacturing and logistics sectors.

Conversely, recent job reports from the United States reveal a resilient labor market, with 177,000 jobs added in April despite the ongoing trade war with China. This suggests continued employer confidence and hiring activity, contrasting with the challenges faced by Chinese factories.

The effectiveness and justification of the Trump tariffs are subjects of debate. With nearly $70 billion collected through tariffs, including $15 billion in April alone, there are indications that these measures are generating revenue.

China’s economic challenges are becoming increasingly apparent, with concerns over its real estate sector, weak consumer spending, an aging population, and overall lack of economic confidence. On May 2nd, a spokesperson for China’s Ministry of Commerce announced that Beijing is considering the possibility of tariff negotiations with the United States.

Amidst rumors of a potential recession, the trade tensions between the world’s two largest economies are escalating, with the US imposing tariffs of up to 245% on Chinese goods. This situation poses significant challenges for China, which heavily relies on exports to the American market.

The US Treasury Secretary has described the tariffs on China as unsustainable, and the US President has expressed openness to a fair deal, promising to treat China “very nicely.” Meanwhile, China aims to project an image of strength and resistance against the United States, However, they’re quietly exempting up to 131 US products, as reported by Reuters.

However, the United States also faces significant repercussions, particularly for farmers dependent on Chinese exports. According to Al Jazeera, net sales of US soybeans have plummeted by 50 percent compared to the previous week, driven by a 67 percent decline in weekly soybean exports to China.

Additionally, US energy firms may struggle due to tariffs imposed by China. The US exports approximately $15 billion worth of oil, gas, and coal to China annually, and losing this market will negatively impact these firms.

During a meeting with President Trump, retail giants Walmart and Target warned that his tariff policy could lead to empty shelves or higher prices for consumers. However, President Trump remains steadfast in his conviction and committed to securing a fair trade deal with China.

He is willing to accept potential economic hardship for Americans in pursuit of this goal. The question remains, however, whether this strategy will ultimately prove successful.

The US and China maintain a significant trading partnership, with the US importing $438.9 billion worth of Chinese goods last year. This close economic relationship suggests a deep interdependence between the two nations.

The United States may also seek to establish strategic relations with India, which is eager to become a major partner. The US Vice President recently met with Indian Prime Minister Modi, and there have been rumors of a potential trade agreement between the two countries, which would mark a significant development.

China may be concerned by India’s rise and the positive relationship between its prime minister and the US president. We will continue to monitor this situation closely.

It remains uncertain who will emerge victorious, or if there will even be a true winner, in this trade war. However, there is a widespread consensus that China needs to adhere to international rules, and many have long called for a fairer trade relationship. Some view the current situation as a necessary stand against China, led by an American leader.

President Trump has four years to resolve this issue, with midterm elections looming in two years. While Xi Jinping does not face election concerns, he must address the potential for economic weakness to incite riots and unrest within China.

We will continue to monitor developments in this ongoing trade war.