The Unwinnable Trade WarNovember/December 2019 101widening o¡ the U.S. trade de ̄cit with China: by nearly 12 percent in
2018 (to $420 billion) and by about another eight percent in the ̄rst
eight months o¡ this year.
There are at least two reasons why Chinese exports to the United
States have not fallen as much as the Trump administration hoped
they would. One is that there are no good substitutes for many o¡ the
products the United States imports from China, such as iPhones and
consumer drones, so U.S. buyers are forced to absorb the taris in
the form o° higher prices. The other reason is that despite recent
headlines, much o¡ the manufacturing o¡ U.S.-bound goods isn’t
leaving China anytime soon, since many companies depend on sup-
ply chains that exist only there. (In 2012, Apple attempted to move
manufacturing o¡ its high-end Mac Pro computer from China to
Texas, but the di¼culty o¡ sourcing the tiny screws that hold it together
prevented the relocation.)
Some export-oriented manufacturing is leaving China, but not for
the United States. According to a May survey conducted by the Amer-Paying the price: at a Black Friday sale in Niles, Illinois, November 2018GURINDER
OSAN
/ AP