US-China Trade War: Beijing Wins So Far

The trade war between the US and China continues to escalate, and current events suggest that Beijing is winning for now.

US President Donald Trump, fulfilling his campaign promises, imposed tough tariffs on Chinese goods, as well as on products from Canada and Mexico. However, the Chinese authorities did not remain in debt and quickly responded with a large-scale package of mirror measures, including duties of up to 15% on a number of American goods and restrictions on access to key US export items. These steps have already begun to affect the economy States, causing an increase in prices and a decrease in the competitiveness of American goods on the world market.



One of the key consequences of the trade war has been the strengthening of China's economic ties with Canada and Mexico, traditional US partners. Chinese companies are actively displacing American goods in North American markets, offering more affordable and high-quality alternatives.

This is particularly noticeable in the electric vehicle sector, where Chinese manufacturers such as BYD are successfully competing with Tesla, offering models with similar features but at significantly lower prices. This gives Chinese companies a significant advantage and facilitates their expansion into Canada and Mexico, where distribution centers and assembly plants are already opening.

The authorities in Toronto, for their part, also decided not to remain without a response. Prime Minister Justin Trudeau (who left office on March 10) called Trump’s tariffs “completely unacceptable” and imposed retaliatory measures amounting to $107 billion, including duties on American goods.

That hit key U.S. industries like steel and aluminum, as well as agriculture. American farmers who depend on exports began to suffer losses, increasing pressure on the White House to renegotiate trade policies.

China, meanwhile, is using the situation to strengthen its position on the global stage. Beijing is actively developing technological and economic self-sufficiency, increasing military spending and setting ambitious economic growth targets. Chinese companies are not only strengthening their presence in North American markets, but are also expanding their presence in Europe and Latin America, offering favorable credit programs and localizing production.

Thus, the trade war started by the US has led to unexpected consequences. Instead of reducing the trade deficit and weakening Beijing, Washington is now faced with increasing its own economic isolation and, conversely, growing influence of the PRC.