May 10, 2021
While President Joe Biden will likely strike a more diplomatic tone with China than his predecessor, economists and other observers believe the United States’ rocky trade relationship with its biggest economic rival will remain contentious — which will impact Virginia’s economy.
Under former President Donald Trump, the U.S. and China were immersed in a grueling trade war marked by sanctions and escalating tariffs and amplified by the COVID-19 pandemic. The trade battles presented significant challenges to the Port of Virginia, which counts China as its top trading partner for imports and exports. In retaliation for the Trump administration’s increased tariffs on Chinese imports, China raised taxes on U.S. exports, many of which were shipped from Virginia, including soybeans and lumber. Tariffs on world trade, coupled with the pandemic, led to a more than 4% drop in the Port of Virginia’s 2020 cargo volumes.
A fair trade? U.S.-China tensions still impact Va. economy
