A Look Back at the Tariff Wars Between the US and China

The tariff wars between the United States and China gained momentum in 2018, during the Trump administration, when the U.S. began imposing additional tariffs on Chinese imports. Under this policy, additional tariffs ranging from 10% to 25% were applied to Chinese goods worth a total of $550 billion. These tariffs covered a wide range of products, including electronics, automobiles, furniture, and agricultural goods.

The primary justification for these tariffs was based on long-standing structural issues highlighted by the United States. Chief among these were intellectual property theft, state-supported companies gaining unfair competitive advantages, and the large trade deficit with China. The U.S. accused China of failing to respect intellectual property rights such as patents, trademarks, and copyrights, claiming that Chinese companies illegally copied products or forced foreign firms to transfer technology.

One of the most prominent examples in this context is the tech giant Huawei. There have been numerous allegations that Huawei stole technology and trade secrets from American firms. For instance, in 2002, it was alleged that Huawei had copied Cisco’s router technology. Although Cisco filed a lawsuit against Huawei, the case was eventually settled, but this incident significantly damaged Huawei’s public image in the U.S.

A similar situation occurred in 2013 when the U.S. accused Huawei engineers of attempting to steal the design of a robotic testing device owned by T-Mobile. As a result of the lawsuit, Huawei was ordered to pay substantial compensation, which further tarnished its reputation in the American market. The court confirmed that Huawei had indeed violated intellectual property rights.

On the other hand, China interpreted these accusations as part of political and economic rivalry. According to China, the U.S. deliberately targeted Huawei—a rapidly rising global tech power—as a means of containing China’s technological advancement. China also claimed that the U.S. pressured its allies to take a stance against Huawei in order to diminish the company’s influence in the global market.

A key turning point in this tension came in 2018, when Huawei’s CFO, Meng Wanzhou, was arrested in Canada at the request of the United States. Meng was accused of bypassing U.S. sanctions on Iran by engaging in indirect trade and misleading banks to conceal these activities. Her arrest sparked outrage in China and was interpreted as a form of “political hostage-taking.”

In retaliation, China detained two Canadian citizens, Michael Kovrig and Michael Spavor, citing activities that endangered national security. While Western countries viewed these arrests as retaliatory, the Chinese government insisted that the individuals were genuinely involved in espionage. This incident became widely known as the "Two Michaels Crisis."

In conclusion, the tariff war between the United States and China cannot be seen merely as a short-term economic conflict. At its core lies a deep structural mistrust between the two nations. The global race for technological supremacy, especially in recent years, has shaped the backdrop of this crisis. China’s progress in technology and the emergence of companies like Huawei as global competitors have led the U.S. to adopt stricter measures against China.