What does China import from US that could take a hit in tariff war?

US President Donald Trump on Wednesday announced a 90-day pause on his reciprocal tariff, just 24 hours after it came into effect, sparking fears of a major trade war. However, he announced an immediate increase in tariffs on China to 125 per cent, up from the previously declared 104 per cent.

On Wednesday, China imposed 84% tariff on goods coming from the United States.

Tariffs increase the cost of products when they travel across borders. That means Chinese companies will now pay much more to purchase items produced in America, which will harm American companies that sell to China.

HOW BIG IS US TRADE WITH CHINA?

In 2023, China was amongst the largest consumers of American goods—Canada and Mexico consumed only more. Based on the US-China Business Council, America exported $145 billion in goods to China during the year.

According to CBS News, the trade provides jobs as well. In 2022, there were nearly 931,000 American jobs reliant on products sold to China, particularly agriculture and livestock.

WHAT PRODUCTS DOES CHINA IMPORT FROM THE US?

China buys a wide variety of products from the United States. The top items are:

Aerospace products and parts: $6.8 billionBasic chemicals: $6.5 billionCoal and petroleum gases: $1.1 billionCommunications and service industry machinery: $1.3 billionComputer equipment: $1.8 billionElectrical equipment: $1.3 billionElectrical equipment and components: $1.7 billionEngines and turbines: $1.4 billionFruits and tree nuts: $1.1 billionGeneral purpose machinery: $2.6 billionIndustrial machinery: $5 billionMarine products: $1 billionMeat products: $4.5 billionMedical equipment and supplies: $3.6 billionMiscellaneous crops: $2.4 billionMiscellaneous fabricated metal products: $1.6 billionMiscellaneous manufactured commodities: $2.1 billionMotor vehicle parts: $1.7 billionMotor vehicles: $6.1 billionNavigational and measurement instruments: $6.8 billionNon-ferrous metal products: $1.8 billionOil and gas: $17.6 billionOilseeds and grains: $18.5 billionOther: $15.9 billionPharmaceutical products and medicines: $11.3 billionPlastic products: $1.4 billionPulp and paperboard mill products: $2.1 billionResins and synthetic fibres: $5.5 billionScrap products: $2.4 billionSemiconductors and components: $6.8 billionSoaps, cleaning agents and toiletries: $1.3 billion

WHICH US STATES EXPORT THE MOST TO CHINA?

Some American states benefit more from selling goods to China than others. In 2023:

Texas led with $25.7 billion in exports.California followed with $16.4 billion.Louisiana sent goods worth $6.5 billion.South Carolina also made the top ten, exporting $3.9 billion.

WHY THIS MATTERS

Chinese companies might have to find other markets in the world for cheaper alternatives if higher tariffs continue in place. This would ultimately harm US businesses-particularly farmers and manufacturers who depend on selling items to China.

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