The tariff war: The view from Cuba

The tariff increase is just the beginning of a trade war that seems far from over. As tensions escalate, both the United States and China appear willing to take this dispute to its ultimate conclusion.

By Arnaldo Laborde Williams, Communist Party of Cuba, translated from the Spanish

The tariff war between the United States and the rest of the world has marked a turning point in international trade relations. This conflict, which began with the Donald Trump administration and has intensified in recent years, not only affects the world's two largest economies, the United States and China, but also has repercussions in countries in Europe, Asia, and Latin America.

The increase in tariffs, which in some cases exceed 100%, has generated a series of economic and political tensions. The United States justifies these measures as a strategy to balance trade deficits and protect its domestic industry. However, these policies have triggered retaliation from other countries, such as China, which has imposed 84% tariffs on US products.

This exchange of protectionist measures has led to a reconfiguration of global supply chains and has made essential products more expensive for consumers.

The consequences of this trade war are profound. On the one hand, financial markets have experienced extreme volatility, with significant declines in stock markets around the world.

On the other hand, consumers face higher prices on consumer goods, from electronics to clothing, which directly affects their purchasing power. Furthermore, companies that depend on imported inputs have had to adjust their strategies, passing on additional costs to consumers or seeking alternatives in other countries.

This tariff increase marks a significant escalation in the trade conflict that began with President Donald Trump's decision to impose "reciprocal" tariffs on nearly all countries.

The increase in US tariffs is one of the most drastic measures taken by the US government in what is considered the most significant trade war of the last decade. These tariffs are the highest imposed on Chinese products in a century . The measure will affect thousands of products, from electronics to clothing, which will surely impact the pockets of American consumers, who could see higher prices for imported goods.

Experts warn that this increase in tariffs will have collateral effects. American companies that rely on products made in China will have to pay more for imports. In turn, they are likely to pass these additional costs on to consumers, leading to widespread price increases for consumer goods. From smartphones to designer clothing, almost everything made in China could see a significant price increase in the coming months.

The Chinese government was quick to issue a forceful response. In a statement on April 9, Beijing called Trump's decisions "one mistake after another. "Furthermore, the Chinese administration called the US tariffs a manifestation of "unilateralism, protectionism, and economic bullying." This aggressive rhetoric reflects the growing tension between the two countries, neither of which are budging from their positions.

Along with the tariff measures, China has also begun adding several US companies to a list of "unreliable entities ." These include companies that work with the US military, highlighting the deepening conflict on several fronts.

China has historically been one of the U.S.'s largest trading partners. In 2023, it was the third-largest U.S. export destination, at more than $145 billion in goods, including vegetable oils, grains, and energy products.

With high tariffs, trade between the two countries could be severely affected, with long-term consequences for the global economy.

In addition to tensions between the U.S. and China, the European Union has also decided to take action in response to President Trump's tariff policies. On April 9, the EU announced it will impose tariffs on over $22 billion worth of U.S. products , including soybeans, motorcycles, and beauty products.

The tariff increase is just the beginning of a trade war that seems far from over. As tensions escalate, both the United States and China appear willing to take this dispute to its ultimate conclusion. Uncertainty remains, and the future of international trade will depend on how these measures evolve and how relations between these two economic superpowers are managed.

In conclusion, the tariff war between the United States and the rest of the world is not just an economic confrontation, but a phenomenon that redefines global dynamics. Its effects are felt in every corner of the planet, from financial markets to consumers' homes. This conflict reminds us that, in an interconnected world, the decisions of one nation can have global repercussions.

This work was translated and shared via a License CC-BY-NC