ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Trump imposed the trade fees in 2018 to shrink the mammoth U.S. trade deficit with China and to compel the Chinese to abandon several unfair trade practices, including coercing American companies into sharing their technology secrets.

Detailed explanation-2: -According to the Announcement of the Customs Tariff Commission of the State Council on Adjusting the Tariffs in 2023 (the 2023 Tariff Adjustment Plan), in 2023, China will impose tariffs on 8, 948 tax items, and the country’s overall tariff level will be reduced from 7.4 percent to 7.3 percent.

Detailed explanation-3: -Many economists, however, argue that tariffs create market distortions that can actually harm domestic consumers over time. They could also lead to the imposition of tit-for-tat tariffs among countries on their respective exports that could lead to a damaging trade war.

Detailed explanation-4: -The tariffs imposed by the US on Chinese commodities have directly affected China’s export chain and increased the downward pressure on its foreign trade. These tariffs have also increased stock market risks, constrained listed companies’ performance, and made trading volume changes more susceptible (Cai et al., 2020.