China Prepares Firm Response to New US Tariffs, Analysts Say
Following the US’s announcement of a 10% tariff on Chinese goods, analysts suggest China is ready to retaliate with measured countermeasures.
The United States has announced a 10% tariff on Chinese imports, effective immediately, a move that has drawn a strong response from analysts who believe China is prepared to retaliate.
The tariffs, also extended to Canada and Mexico, are justified by the White House as a necessary measure to address the illegal fentanyl trade.
According to White House press secretary Karoline Leavitt, these tariffs will remain in place until significant progress is made in curbing the flow of illegal drugs and migrants into the US.
Dylan Loh, assistant professor of foreign policy at Nanyang Technological University in Singapore, noted that the tariff is a reduction from earlier threats made by former President Donald Trump, which had proposed tariffs as high as 60%.
Loh suggested that while China will respond, its retaliation will likely be more measured to avoid escalating tensions further.
Many market players have already anticipated such a move, Loh added, meaning its immediate effect on US-China relations may be limited.
The tariff announcement comes after a period of relative calm in US-China relations since Trump’s second term began.
Despite this, analysts like Wang Yiwei from Renmin University in Beijing emphasized that China is well-prepared for this development.
Wang pointed out that while Trump’s initial focus during his first term was on reducing the US-China trade deficit, his current approach aims to incentivize the return of industries to the US.
Wang also observed that the US, reliant on China in key sectors such as rare earth materials, would face challenges in reducing this dependency, making retaliation from China a plausible strategy.
Despite the imposition of tariffs, Wang expressed that China’s relatively self-sufficient economy would mitigate the potential negative effects on its own growth.
He also noted that the tariffs might trigger inflation in the US, which could hurt American domestic consumption.
While the relationship between the two powers remains complex, Wang believes that short-term US-China relations show signs of improvement, with shared interests like the war in Ukraine providing areas of potential cooperation.
However, structural challenges between the US and China remain, with Wang suggesting that Trump’s presidency still leaves room for negotiation on some fronts.
The tariffs, also extended to Canada and Mexico, are justified by the White House as a necessary measure to address the illegal fentanyl trade.
According to White House press secretary Karoline Leavitt, these tariffs will remain in place until significant progress is made in curbing the flow of illegal drugs and migrants into the US.
Dylan Loh, assistant professor of foreign policy at Nanyang Technological University in Singapore, noted that the tariff is a reduction from earlier threats made by former President Donald Trump, which had proposed tariffs as high as 60%.
Loh suggested that while China will respond, its retaliation will likely be more measured to avoid escalating tensions further.
Many market players have already anticipated such a move, Loh added, meaning its immediate effect on US-China relations may be limited.
The tariff announcement comes after a period of relative calm in US-China relations since Trump’s second term began.
Despite this, analysts like Wang Yiwei from Renmin University in Beijing emphasized that China is well-prepared for this development.
Wang pointed out that while Trump’s initial focus during his first term was on reducing the US-China trade deficit, his current approach aims to incentivize the return of industries to the US.
Wang also observed that the US, reliant on China in key sectors such as rare earth materials, would face challenges in reducing this dependency, making retaliation from China a plausible strategy.
Despite the imposition of tariffs, Wang expressed that China’s relatively self-sufficient economy would mitigate the potential negative effects on its own growth.
He also noted that the tariffs might trigger inflation in the US, which could hurt American domestic consumption.
While the relationship between the two powers remains complex, Wang believes that short-term US-China relations show signs of improvement, with shared interests like the war in Ukraine providing areas of potential cooperation.
However, structural challenges between the US and China remain, with Wang suggesting that Trump’s presidency still leaves room for negotiation on some fronts.