What does this pact mean for Latin America and immigrants in Canada?
Brooks, Alberta – May 11, 2025.
A few years ago, the world watched with uncertainty the growing tension between two economic giants: the United States and China. Today, that story is back in the conversation following the media resurgence of the trade agreement signed by Donald Trump during his presidency, a pact that redefined the rules of the global game.
The conflict: a war or a strategy?
During his term, Donald Trump imposed heavy tariffs on thousands of Chinese products, with the aim of reducing the trade deficit of the U.S. and protecting the domestic industry. This measure triggered an unprecedented trade war that affected everything from the price of cell phones to agricultural products.
China responded with its own tariffs, impacting American exporters. However, in 2020, both powers signed what became known as the "Phase One Trade Agreement," committing to reduce certain tariffs and increase China's purchase of American agricultural products.
What did the agreement include?
- China committed to purchasing an additional 200 billion dollars in American goods and services.
- Improvements were agreed upon in the protection of intellectual property.
- The United States maintained some tariffs as a pressure mechanism for future negotiations.
- An equilibrium was sought in sensitive sectors such as technology, manufacturing, energy, and agriculture.
Why is it making news again today?
With Donald Trump back in the presidential race, this agreement has become one of his key arguments to defend his foreign policy. Additionally, many economists are analyzing its long-term effects, especially in an increasingly commercially polarized world.
How does this affect Latino immigrants in Canada?
Although Canada was not directly part of the agreement, the collateral effects reached here. Technological products and agricultural tools, many of them imported from the U.S., experienced price increases. Furthermore, the climate of tension between powers caused volatility in the markets that impacted small businesses, including those of Latino entrepreneurs in Alberta.
Today, with an interconnected world, any decision between the U.S. and China can resonate in our pockets. Hence the importance of understanding these movements and staying informed.
What comes next?
Many analysts agree that the next big challenge will be the balance between globalization and national protection. If Trump returns to power, it is likely that his approach to China will be even firmer, and that new trade agreements or conflicts will once again shake up the global economy.
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