Analysis: China’s Higher Tariffs Did Little for Import Substitution

As China and the U.S. waged their trade war over the past few years, retaliatory tariffs were not an effective tool for replacing American imports. For China, the key to import substitution was technological advancement and the price advantages of its industrial supply chains.

China’s countermeasures to additional U.S. tariffs since the first Trump administration meant that last year, 73.3% of China’s imports from the country were subject to retaliatory duties.