Commentary: China’s Best Strategy to Counter Trump’s Tariff Onslaught
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With tariffs climbing steeply, Chinese products destined for U.S. markets — or re-routed through ASEAN countries — will face significantly higher landed costs
China has hit back against U.S, President Donald Trump’s sweeping tariffs with an 11-point retaliation package that includes matching 34% tariffs on all American goods, export controls on critical rare earth minerals, and the blacklisting of 16 American entities for trade restrictions.
Unveiled two days after Washington’s “reciprocal tariff” announcement, the countermeasures mark the third round of tariff exchanges unleashed by Beijing since the start of 2025 in response to escalating U.S. trade curbs.
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- China retaliates against U.S. tariffs with measures including 34% tariffs on American goods and export controls on rare earth minerals, resulting in a collective tariff increase of about 36 percentage points on U.S. goods.
- Despite these measures, the economic impact on China is expected to be limited due to the low proportion of U.S. imports in China's total imports, with the U.S. accounting for only 6.3% of China's imports in 2024.
- Industries like machinery, chemicals, and energy may see increased prices, but China may offset tariff impacts by boosting internal consumption and supporting affected industries.
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What Happened When
- 2018-2019：
- Trade war between China and the U.S. with additional duties imposed on items like steel and aluminum.
- 2024：
- China's imports from the U.S. decline to represent only 6.3% of China's total imports and a mere 0.9% of GDP.
- Start of 2025：
- Start of escalating U.S. trade curbs to which China begins responding with tariff exchanges.
- February 2025：
- China imposed tariffs of 10% to 15% on certain U.S. goods.
- March 2025：
- China imposed additional tariffs of 10% to 15% on certain U.S. goods.
- Two days After Washington's announcement：
- China unveils an 11-point retaliation package including 34% tariffs on all American goods.
AI generated, for reference only
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