In conclusion, the U.S. has learned and come to appreciate China’s value when it comes to their exports, which saw significant growth in just a short period after China joined the WTO. That growth, which can be presumed to be extraordinary, has a substantial impact on the United States’ exports. The exporter market ware forced to lower its prices due to the low tariffs on China. Following this analysis, we can conclude that international trade was affected by the entry of China into the WTO, which saw it incur lower tariffs. Moreover, due to the large population and high levels of manufacturing, the Chinese goods were of various types, and low prices due to low costs on labor. This made it possible for China to compete more, and its growth continue to go up. This in the end affects the United States export market, and eventually their manufacturing prices for the end goods. This paper shows very fundamental mechanisms that affect the trade between U.S. and China after the acceptance of China on WTO. With reduced import tariffs on the intermediate goods, Chinese firms cost go down immediately but still leaves an increase in the value and range of the intermedimiddlemports, thus registering a boost to their productivity. With a lower marginal cost, it was easy for them to penetrate the U.S market and comfortably reduce Chinese export prices. By consolidating domestic and other countries’ responses, including the U.S, their prices were much higher than China’s reduced costs. This made us concluded that the lowering of tariffs to the Chines was a significant factor in welfare gains for the United States.