An economic conflict between China and the United States has been ongoing since January 2018. As tariffs increase, so do the issues between China and the US. As most of us know, nearly everything we buy is made in China because of its low labor costs. China has become known as “the world’s factory.” Trump says that by “increasing tariffs, this will encourage US consumers to buy more American-made goods, increase the amount of tax raised, and lead to huge investments in the country.” Many economic experts expect that these tariffs will have a worse effect on the economy and will push up prices across a range of imported goods, as firms pass on some or all of their increased costs. Products affected by this could include everything from clothing, coffee, and alcohol to our electronics. Some firms may also decide to import fewer foreign goods, which could make their products all the more expensive and harder to obtain.

An influencer even pointed out that big brands like Lululemon sell a pair of leggings for up to $100. However, the same exact products from these factories in China can cost as little as $5–$6 for one pair. Even the Chinese companies selling on Amazon are also planning to increase prices for US customers or leave the US market. This comes after US President Donald Trump announced another big rise in tariffs on Chinese goods. This move has increased tensions between China and the US, the world’s two largest economies, as the trade war between the US and China escalates. Chinese manufacturers are clapping back on social media in the most unexpected ways. Several Chinese suppliers who produce items for top global luxury brands have taken action on platforms like X and TikTok to showcase their craftsmanship and even offer direct consumer sales at a fraction of retail prices. These luxury designs on direct offer range from Birkin, Louis Vuitton, Chanel, Estee Lauder, and Bobbi Brown.

If China were to cut off trade with the US, the impact on both economies would be significant, though perhaps not as devastating as some might initially imagine, especially for China. The US would face many challenges, particularly because goods are heavily reliant on Chinese production. The US would likely see a rise in prices for goods such as electronics, clothing, and appliances. This could be very impactful for lower-income households and would greatly increase homelessness. While China, still exporting to other major economies, would likely experience some economic slowdown. Even though China could attempt to find new markets for its goods, this process would likely take time and could lead to a temporary decrease in production and employment. Overall, the US and China are both heavily reliant on each other economically; neither would be completely devastated by a complete cut-off in trade. The US would face higher prices and supply chain disruptions, while China would experience reduced exports and slower economic growth. However, both countries have diverse economies and could find ways to adapt to the changes, though it would likely be a difficult and costly process.

Work sCited:

• Jaramillo, A. (2025, April 23). Trump says China tariffs will ‘come down substantially,’ hinting at potential U-turn. CNN. Retrieved April 23, 2025, from https://www.cnn.com/2025/04/22/business/trump-china-trade-war-reduction-hnk-intl/index.html
• Mukhopadhyay, S. (2025, April 14). $100 Lululemon, Under Armour gear for $6? TikTok reveals dirt cheap China direct sales; US buyers stunned | Today News. Mint. Retrieved April 23, 2025, from https://www.livemint.com/news/world/chinese-companies-selling-branded-products-for-cheap-price-us-customers-react-we-are-not-winning-this-trade-war-11744628814909.html