Have you ever traded snacks with friends at school? Imagine if someone suddenly said you had to pay extra candy just to trade! That’s kind of what’s happening between the United States and China. 🍭🍬
What’s a Tariff?
A tariff is like a special tax that a country puts on goods it buys from another country. So when the U.S. buys toys, clothes, or electronics from China, a tariff makes those items more expensive. The idea is to encourage people to buy things made in their own country.
What Did President Trump Do?
In 2018, President Trump decided to put tariffs on many goods coming from China, Canada, and Mexico. He thought this would help American businesses and workers by making foreign goods more expensive.
Did It Work?
Well, not exactly. Instead of helping, the tariffs made things cost more for American shoppers. Imagine having to pay extra for your favorite video game or sneakers! 🕹️👟
A Lesson from History
This isn’t the first time tariffs have caused problems. In 1930, the U.S. passed a law called the Smoot-Hawley Tariff Act, which raised tariffs on many imported goods. Other countries got upset and did the same thing back to the U.S. This made the Great Depression worse, hurting economies all around the world.
How China Became Stronger
Instead of slowing down, China started making even more stuff on their own. Chinese companies began innovating and creating new technologies. They also started trading more with other countries. It’s like when one door closed, they found another one open! 🚪✨
Why Trade Wars Aren’t Fun
When countries fight over trade, everyone can end up losing. People might lose jobs, things become more expensive, and countries may not get along as well.
Working Together is Better
Just like it’s better to share and play nicely on the playground, countries do better when they work together. Trading fairly helps everyone get what they need and keeps friendships strong across the globe. 🌍🤝
Reference(s):
cgtn.com
