The United States-China Trade Dispute: a Mercantilist Perspective on Tariff Policy and Global Economic Implications

Abstract

This study explores the dynamics and process of the trade dispute between the United States (US) and China from 2018 to 2020. The primary focus is on the implementation of import tariffs by the US, aimed at addressing the trade deficit, reducing imports, and increasing exports. US trade policy was influenced by economic and political motives, with the main goal of maintaining US economic dominance and pressuring China to reform its trade practices. This study employs a descriptive qualitative methodology based on post-positivist philosophy, utilizing secondary data from literature reviews and internet sources. The findings indicate that the import tariffs successfully reduced imports and increased US exports in 2020, while protecting domestic industries and the agricultural sector from the retaliatory tariffs imposed by China. This policy reflects a mercantilist approach, emphasizing the protection of domestic industries and the balancing of the trade deficit. The trade dispute has significant impacts on the global economy and underscores the importance of constructive dialogue for conflict resolution. This study suggests the need for a deeper analysis of the dispute's impact on the global economy and society. The conflict has broad implications for the global economy, increasing the cost of goods, and affecting monetary and fiscal policies in both countries. Resolving this dispute is crucial for global economic and political stability, requiring constructive dialogue and close international cooperation.