The Trouble with Tariffs: Why China and America’s Current Contest is Nothing New

The demands President Donald Trump has levied against China, imposing tariffs on them yet expecting them to cut many tariffs against the US, are controversial to say the least.  Critics call his threats ridiculous and unrealistic, believing China shouldn’t be expected to agree to such an outlandish deal. However, supporters defend Trump’s stance as part of the classic negotiation strategy, starting at a high position so that he can talk things down and meet China at a more reasonable middle. Despite these different perspectives, both sides see eye-to-eye on one factor: the importance of America keeping access to the Chinese market.

Neither side wants to see America lose its trade relationship with China, especially not after how hard it was to establish the link in the first place.

China has done its best to remain isolated from the rest of the world, they built the Great Wall for a reason, but they were unable to remain completely self-sufficient. America and China have been trading with one another since the Civil War ended, though China initially instituted harsh restrictions and exported far more than it imported, a position President Trump is currently trying to reverse.

It wasn’t until the 19th century when China began opening its doors to more expansive trade with the West, and that was only because their doors were forced open due to the military actions of the Opium War. Between foreign powers breaking in and their newly communist government doing a poor job of pushing back, China has long been at the mercy of outside powers, forced to comply at its own expense.

But that was then, this is now, and now China is a super power, the West doesn’t want them to throw their weight around.

Many voice their criticisms over China’s poor labor policies and industry practices, citing the inhumane sweatshops and flagrant thefts of intellectual property as signs that China does not deserve its success, or should at least pay a higher price for its crimes. Yet at the same time, these same people purchase and enjoy the various products manufactured in those very same sweatshops without any signs of stopping. What’s more, America itself is guilty of stealing intellectual property from Britain during the Industrial Revolution, building its factories and fortune on stolen designs only to copyright them as their very own.

Those at the top so often decry up-and-comers for utilizing the very same strategies, and international economies are no different.

Oddly enough, the very same negotiation methods President Trump is using against China are themselves quite common in Eastern businesses. Many marketplaces and street vendors practice haggling instead of fixed rates, with Buyers and Sellers each trying to talk one another into their own ideal price. It is an ancient practice that the West has largely left behind, but in the East it is alive and well, perhaps there is something to be said about President Trump playing by their rules.

Regardless of who is playing by what rules, the fact of the matter remains that no matter who “wins” this stand-off, both sides stand to lose dearly should trade come to an end.

America depends on the many goods China produces, and China depends on America buying those goods, it’s as simple as that. Without cheap overseas manufacturing, America will never be able to meet their own consumer’s insatiable needs. And without such a hungry market buying up their wares, China won’t get any return on the various products they produce. The cruel irony here is that both sides are so determined to prove they can stand on their own, yet their childish antics could very well cause both of them to come tumbling down.

If the focus could be shifted away from the bravado of self-sufficiency and placed instead on the pragmatism of cooperation, both sides could perhaps reach an agreement that would be beneficial for all involved, maybe even strengthening the world economy as a whole.

Sadly, anyone who has ever looked at a compass can tell you that making the East meet the West is no easy feat.