Trade between the world’s two largest economies—a link that defined the world economy for two decades—is on life support. U.S. tariffs on China now stand at 145%; China’s tariffs on the U.S. now stand at 125%. And that’s just the baseline, not including additional tariffs on specific goods like steel (in the case of the U.S.) or agricultural products (in the case of China).
“The tariff rates are now so high as to be prohibitive of most direct bilateral trade,” says Yeling Tan, a professor of public policy at Oxford University.
