The trade war between the United States and China has persisted and may soon be escalating. President Trump and Chinese leader Xi Jinping have planned a meeting where they will discuss the rising tariffs and hopefully come to an agreement that is mutually beneficial. It has been reported by “close individuals” that the United States could impose harsher tariffs on Chinese products and add tariffs to the products not currently effected.   This could come if the meeting next month between the two leaders does not go well. A number of industries are reporting rising losses as tariffs make it more difficult to generate profits from international buyers.

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This past week President Trump has stated, "I think we will make a great deal with China, and it has to be great because they’ve drained our country." Supporters believe that this trade war is a strategy to use the economic power of the United States as a way of increasing overall growth in the long term. Those who oppose the current plan see it as an act of aggression that only harms domestic industries and seeks to further divide the United States from the rest of the global market. President Xi has commented that he disagrees with the actions of President Trump and gave this message to the global community, “China will not close its door to the world and will only become more and more open.” Financial analysts suggest that this will come to a conclusion sooner than later but it will cost companies quite a lot of money.

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The tariffs initiated by President Trump resulted in retaliatory tariffs on a number of exported US goods. The hardest hit industry on both sides is automotive companies and their suppliers. Many of these companies have been forced to relocate manufacturing facilities from China to Southeast Asia. There is a trickle- down effect and the US steel industry has taken a hit as well. The cost of steel in the United States has risen eleven percent while the cost of steel has decreased globally. Those who rely on steel from the United States reported disruptions to their supply chain and the increased cost has hindered performance as a portion of the extra expenses have been pushed onto the consumer. Those that manufacture steel domestically have expressed support for the deal because it is slowing the large amounts of imported steel being dumped, or sold under market prices, within the United States. The process of dumping can severely damage domestic manufacturers as they cannot compete with exceptionally low prices. Other manufacturing and distributing companies have reported stocks slipping as their competitive advantage fades. Companies selling boats, planes, and other large machinery are having a particularly difficult time in the current environment and they will either have to adapt or halt operations.

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The seemingly hostile economic environment has the potential for serious harm to both economies but there are economists who believe this will facilitate growth, as well as improved relations with China. There are fears that this situation will cost people their jobs but changes are happening rapidly. Hopefully, the meeting between Presidents Trump and Xi will resolve the economic battle with stronger economies on each side.