The US with China trade deficit in 2020 was $252.8 billion. That’s a $92.4 billion decrease from 2019’s $345.2 billion. The deficit exists as a result of U.S. exports to China was solely $95.8 billion, whereas imports from China were $348.7 billion. (Source)
China’s biggest import from the US is soybeans, aircraft, and machinery/Electrical. China cancels their soybeans import after Donald Trump US President started the trade war. He fixed tariffs on Chinese steel export and also other goods. Soybeans imports had doubled to approximately $8 billion before the trade war. And US import from China computers, phone, toys, textiles, etc. These imports are basically the US send raw materials to China for low-cost labor. And once these materials assembly complete back to the US, China is considered imports.
Annual Trade Deficit with China from 2012
In 2012, the US trade deficit with China was $315.1 billion. After 2015 $367.3 billion it’s decreased in 2016 to $346.8 billion, by 2018 it had again increased to $418.9 billion, before falling to $252.8 billion in 2020. (Source)
China’s product price is very lower than in other countries because of their low labor cost, and US buyers are also looking for the low price. If we enforced trade, economic policy, U.S. customers would have to be compelled to pay higher costs for his or her “Made in America” product; therefore, it’s unlikely that the deficit can modification. The majority would rather pay as very little as attainable for computers, natural philosophy, and articles of clothing, although it means that alternative Americans lose their jobs. China is the world’s largest economy and has the world’s largest population. It should divide its production among virtually 1.4 billion residents. a standard thanks to living the quality of living is gross domestic product per capita. In 2019, China’s GDP per capita was $16,784.
Trump enacted a 25% duty on steel imports and its effect on July 2018 impact approximately $50 billion value of Chinese imports. In response, China cancels all imports of soybeans.
Trump’s tariffs have raised the prices of foreign steel, which are ultimately passed on to customers. The tariffs came a month when Trump’s obligatory tariffs and quotas on foreign star panels and laundry machines. China has become a worldwide leader in solar panel production. The tariffs depressed the stock market after they were proclaimed. (Source)
In this pandemic year, People are mostly staying at home and using electronic goods make their life to easy. However, the US exports more to china because the pandemic hit china badly. The first COVID-19 case is found in China and the CCP are decided to Lock-Down in china. Because of the Chinese, farmers are being affected.
Donald Trump’s government is trying something like the phase one trade agreement with China earlier this February, which didn’t really improve anything about the trade balance.
Common American people say, it’s my consequence of the pandemic, American people are using their extra liquidity not for services as they usually do for travel and so on, but they channeled to consumer goods more than they would have otherwise. You know this has been the trend for this year. The question really is how much a government can steer trade relations.
This may or may not continue with new President-elect Joe Biden. The obvious reason, Biden Son has some funding company over there, However, some time President-Elect Joe Biden criticized Chinese policy, Its theft of intellectual property and Chinese subsidies policy and, other difficult areas and in trade relation. U.S president Joe Biden may negotiate with china, about the few trade agreement, Joe Biden trying to rebuild the relation.