Following Trump’s declaration of imposing new tariffs on all U.S. trading partners around the world, China urged the U.S. for an immediate cancellation, while promising countermeasures to protect its own interest.
On Wednesday, the U.S. President Donald Trump announced that all nations will face a 10% baseline tariff on almost all goods imported to the U.S., China, however, will face a 34% tariff on top of the 20% Trump already imposed. Meaning that after April 9, China could face a 54% tariff.
The Chinese commerce ministry criticized Trump’s announcement for shaking the trade balance each nation has formed through several trade negotiations in past decades, and declared that Beijing will take countermeasures to safeguard its own rights and interests.
In addition to worsening the trade war, Trump also signed an executive order to shut down the “de minimis” loophole. This flaw allows China and Hong Kong to ship low-value packages into the US without any tariff.
There are also several negative effects caused by these tariffs. Many exporters and companies may end the idea of relocating manufacturing out of China since other possible destinations, like India, Mexico, Vietnam, and Malaysia, are also facing high tariffs as well.
William Hurst, University of Cambridge’s professor, stated the Chinese economy will not have a definitive mark after facing these tariffs, and warned that the world’s second largest economy may shift its trade focus to other nations while diminishing the essential of U.S. export.
Ruby Osman, an expert from Tony Blair Institute for Global Change, also stated that China knew this day would happen and prepared several stimulus and measures to retaliate and cushion the impact of trade war.
