Washington: US President Donald Trump's tariffs on China have escalated tensions between Washington and Beijing, following the imposition of reciprocal tariffs after already targeting Chinese goods alongside those from Canada and Mexico. In his second term, Trump imposed 25% tariffs on Canada and Mexico and 10% on China, marking April 2 as 'Liberation Day' for implementing these measures against retaliating countries.
According to Anadolu Agency, Trump's reciprocal tariffs affect over 180 countries, ranging from 10% to 50%, including many of the US' trading partners. On Wednesday, China faced 34% reciprocal tariffs when Trump signed an executive order, raising concerns about deepening trade wars and potential disruptions to global trade.
The Chinese Commerce Ministry has opposed this move, announcing plans for countermeasures and labeling the tariffs as 'typical unilateral bullying,' as reported by Xinhua News Agency. A ministry spokesperson emphasized that rising tariffs cannot solve US issues, potentially harming US interests and global economic stability.
Uncertainties have emerged in global markets amid China's anticipated retaliation, while the US maintains its trade protectionist stance. The technology, automotive, and industrial sectors are directly affected by the ensuing tensions.
Since Trump's inauguration on January 20, the first tariffs have impacted Chinese exports. In December 2024, Chinese exports to the US soared 15.6% year-on-year, with a 2.3% increase in the first two months of 2025, while imports fell 8.4% annually in January and February to $369.43 billion, marking the sharpest decline since July 2023. China's foreign trade surplus reached $170.5 billion in the first two months of the year.
Baris Aric, chief of the Trkiye-based China Trade Association, told Anadolu that these protectionist trade decisions will further disrupt the global trade balance. He recalled that similar tariffs in 2018-2019 led to trade wars initiated by China's retaliation, narrowing US-China trade volume without closing the trade deficit.
Aric noted that agricultural, technology, and industrial sectors were particularly affected, with US soybean exports to China significantly declining as China turned to alternative suppliers. He suggested that a similar tariff policy by Trump could decrease trade volume without improving the trade deficit, emphasizing that protectionist trade decisions do not serve the economic interests of either side.
Aric stated that Beijing has long prepared against US tariffs by diversifying its export markets, targeting alternatives like the EU, Africa, and South Asia. He highlighted that the Trump administration's total tariffs on China now reach 54%, considering the new 34% reciprocal tariffs added to the previous 20%. China is expected to respond harshly, impacting US agriculture, machinery, and auto sectors, with potential tariff hikes in tech, oil, and gas businesses.
Rising tariffs pose stagflation risks and threaten economies already struggling with inflation. Aric emphasized that these new tariffs and China's response escalate global trade uncertainties, diminishing investor confidence and potentially leading to a global decline in investments. While a decline in economic growth was initially unexpected, a slowdown is anticipated if tensions persist, potentially pressuring economic progress.