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Commodity dependency: the United States and China in a trade war


Avril, 21 2025
watermark Economic news

The United States depends on China for supplies in 198 product categories, while China is similarly dependent on only 68 items. American imports from China exceed a third for many goods, which has increased the tension in the trade war after the introduction of «reciprocal» duties. For China, the rates reached 54%, and then rose to 145%, while for American products in China they increased to 125%, practically paralyzing trade.


For the United States, the main dependence on Chinese supplies is noted in phones ($50.9 billion), batteries ($17.9 billion), toys ($13.5 billion) and video game consoles ($7 billion). In some categories – umbrellas, thermoses, baby strollers, fireworks – the dependence exceeds 90%. China provides more than two thirds of the imports of chalk, manganese and rare earths to the United States.


China, in turn, is most dependent on American imports for petroleum products ($14 billion), turbojet engines and gas turbines ($6.6 billion), aviation equipment ($5.3 billion), as well as cotton fiber ($1.85 billion) and sorghum ($1.7 billion). For a number of categories, such as antibiotics, lighters, fodder roots, and meat products, the U.S. share of supplies reaches 60-93%.


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Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.