THE WHAT? In a recent development that marks a significant escalation in the ongoing trade disputes between the U.S. and China, the Chinese government has imposed a substantial 43.5% levy on imports of U.S.-manufactured propionic acid. This move follows an investigation that began in July, concluding that the chemical was being sold at unfairly low prices, adversely affecting local.
THE DETAILS The levy was announced shortly after U.S. President Joe Biden advocated for higher tariffs on Chinese steel and the initiation of several U.S. antidumping probes targeting China’s maritime industries. The accused U.S. companies, Dow and Eastman Chemical, have yet to respond to these allegations. This trade dispute unfolds against a backdrop of broader geopolitical rivalries, with both nations taking steps to secure and promote their respective industrial sectors against perceived threats and unfair competition.
THE WHY? This trade conflict reflects deeper economic and geopolitical tensions, with implications extending beyond bilateral relations to affect global trade dynamics and supply chain security. The U.S. and China are increasingly seeking to decouple their technology and manufacturing sectors in a bid to reduce reliance on each other, complicating the global economic landscape. This move by China signals a firm stance on protecting its industries and is likely to provoke further retaliatory measures from the U.S., potentially leading to a protracted trade standoff.
