More Winning: Research Shows China Is Feeling Most of the Pain from the Trade War

Eric Thayer/Reuters

It looks like President Donald Trump can add a point to his wins column in his highly-criticized trade war against China.

Adjusting the trade deals with China was one of President Trump’s highest priorities, both on the campaign trail and as president. He routinely called out China on Twitter, highlighting his grievances with the trade arrangements currently in place:

President Trump followed through on his promises to crack down on Chinese trade deals — and he didn’t make subtle adjustments. He added a tariff to most goods imported from China, and the Chinese delegation claimed the United States was putting a “knife to the neck” of their economy.

While some appreciated President Trump’s decision to play hardball with the Chinese, others feared the backlash that China promised. One group that was particularly concerned were those in the agriculture sector, particularly soybean producers.

In response to President Trump’s tariffs, China slapped their own tax on agriculture imports. The backlash was so severe for American farmers that the U.S. had to bail out the agriculture sector with a billion dollar aid package.

The Chinese even placed ads in Iowa newspapers criticizing the trade deals in hopes to turn farmers against President Trump:

Although this trade deal caused some pain for American farmers, China is carrying the burden of the current trade war.

EconPol, a research group out of the European Union, found that the trade war is hurting China much more than it is impacting the United States.

President Trump issued a 25 percent tax on hundreds of billions of dollars worth of Chinese products. According to EconPol, American consumers are seeing a 4.5 percent increase in prices, but Chinese producers are carrying the other 20.5 percent of the tariff.

In other words, the trade war is more than four times more painful for China than it is for the United States.

Many took to Twitter to commend the American victory:

While the trade deals may have made many Americans uneasy, it looks like it could be paying off in the overall picture.

What do you think?

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Phyllis Softa
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This will be great comfort to the soybean farmers, the laid-off WI Harley Davidson workers, the MI laid off autoworkers. the SC bicycle manufacturer workers and the CEO’s and stockholders of all the companies that reduced their projections for 2019 sales.

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