The U.S. recorded a deficit in trading goods with 102 countries globally, and China surplus in trade with 168 countries, at the end of 2017. China has a history of being dependent on the U.S., through the aggregate demand volume source for the products, which China produces of its export-concentrated economy. Nevertheless, simultaneously, America needs low-cost imports from China, in order to supply affordable goods for low-income American consumer base. Earlier on, Donald Trump suggested that American organizations expand manufacturing within the country opposed to expanding production in China, with the purpose of avoiding duty payments imposed by the U.S. on goods imported from China. President Trump increased the import duties on goods from China up to $250 billion. Also, he announced new import taxes on steel, aluminum and solar energy panels, which concern other countries too. It is expected that taxes will generate a negative effect for other economies, industries and consumers. Taxing imported goods will increase the prices for consumers. Higher price equals smaller demand in quantity of products. This elaborates that, The U.S. will have an increase on the value of imports, which is identical to increasing tax on consumers. Furthermore, this indicates for China, the need to expanding export to other markets.Initial idea is highly intuitive-with the increase of price for goods, manufacturers will be driven to supply more goods, however, consumers will drop in demand. Market equilibrium is defined by two of these groups matching up- the correct number of goods are traded at the correct price, so that supply precisely meets the demand.