Amid Spiralling Tariffs, A Look At What US And China Import From Each Other

The United States and China are embroiled in a heated trade dispute, with the US imposing substantial tariffs on Chinese goods. The current administration has levied a 104 per cent tariff on Chinese imports, while China has retaliated with an 84 per cent tariff, up from the 34 per cent tariff on US products. This tit-for-tat escalation has significant implications for the global economy, given that the two nations account for 43 per cent of the world's economic output in 2025, according to the International Monetary Fund.

US Exports To China

US exports to China in 2023 included soybeans, crude petroleum, petroleum gas, cars, integrated circuits, special machinery, gas turbines, vaccines, blood products, antisera, toxins and cultures, packaged medicaments, acyclic hydrocarbons, beauty and skincare products, corn, scrap copper, raw cotton, ethylene polymers, and other plastic products, according to a report by the Financial Express. China is also a significant market for US companies, with Intel's sales to China accounting for 29% of the company's global revenue in 2024.

China's Exports To The US

China's exports to the US in 2023 featured a wide range of consumer and industrial goods, including broadcasting equipment, computers, office machine parts, electric batteries, heaters, toys, video and card games, seats, furniture, party decorations, knit sweaters, plastic products, motor vehicle parts and accessories, clothing, footwear, mattresses, light fixtures, metal mountings, iron housewares, and medical instruments.

Trade Relations Between The US And China

The trade war has resulted in a decline in US exports to China, with a 2.9% decrease in 2024 compared to the previous year. Conversely, Chinese imports to the US have increased by 2.8%, leading to a widening trade deficit. The US goods trade deficit with China stood at $295.4 billion in 2024, a 5.8% rise from 2023. China remains the US's third-largest trade partner, accounting for 13.4% of all US imports.

Sector-Specific Impacts

The high-tech sector is particularly vulnerable to the rising tariffs. China imports approximately $10 billion worth of chips from the US annually, including $8 billion worth of central processing units (CPUs) manufactured by Intel. The agricultural and farm equipment sectors in the US are also feeling the heat from China's retaliatory tariffs. Beijing has added a 34% duty on these products, significantly impacting major US firms like Caterpillar, Deere & Co, and AGCO.

The Global Economy

The ongoing trade war between the US and China has significant implications for the global economy. The two nations together represent 43% of the world's economic output, and the trade dispute is likely to hamper bilateral trade and threaten global investment and economic growth. China's massive goods surplus, around $1 trillion, also poses a risk to the global economy, as the country may offload excess products into international markets, potentially flooding global markets with low-cost goods and putting local manufacturers under pressure.