Trump plans to instill a humongous 45% tariff on all imports from China. By forcing people to pay a 45% tax on all Chinese goods Trump hopes to empower American companies. People in America will be much more likely to buy American-made goods rather than the electronics, clothing, and machinery commonly bought from China. The only reason we need a tariff to persuade people to buy American goods because Chinese products are so much cheaper than those made in America. Chinese corporations can afford to sell their products at such cheap prices because they have a low standard of living, caused by their low GDP per capita, which is at $14,100, much less than America's, which is at $53,000. As of 2010, services and goods from China only accounted for 3% of consumer spending. If the tariff is created, it could see Mexican exports raise 3% due to new consumer demand. China's president, Xi Jinping, fears a trade-war could start if the tariff is created and instilled. He does not want to have to battle America in any kind of trade war and neither does the stock market. The effects of the tariff would be worse on American consumers and companies because Chinese firms rely way less on American exports and American firms rely on Chinese exports. The tariff could also be fueled by a historical hatred of communism expressed by America. Since communism and democracy are fueled by very different ideology, it is plausible that many Americans believe that we shouldn't give them our money due to their government. However, statistics show that while America has been increasing in demand for goods, china has been matching that demand with increase efficiency, showing that communism has changed the Chinese work force for the better.