China braces for potential trade war after Trump threatens to impose tariffs

TAIPEI, TAIWAN — 

China is bracing for imaginable tariffs aft U.S. President Donald Trump threatened to slap a 10% work connected Chinese imports arsenic aboriginal arsenic Feb. 1.

At a regular property briefing Wednesday, Chinese overseas ministry spokesperson Mao Ning stressed China’s committedness to defending its “national interests.”

“We person ever believed that determination are nary winners successful a commercialized warfare oregon a tariff war,” she said.

Following Trump’s remarks, China’s benchmark CSI 300 Index dropped 0.9% Wednesday, ending a four-day winning streak. The Hong Kong-listed Hang Seng China Enterprises Index, which tracks Chinese stocks, fell 2%.

Beijing’s reactions travel aft Trump said his squad was looking astatine perchance imposing a 10% tariff connected Chinese imports due to the fact that China has been “sending fentanyl into the U.S. done Mexico and Canada.”

“Probably February 1st is the day we're looking at,” the U.S. president told reporters Tuesday astatine the White House.

Trump’s remark comes 1 time aft helium appeared to beryllium holding disconnected connected imposing tariffs connected imports from China, and helium directed national agencies to analyse U.S. commercialized deficits and unfair commercialized practices with different countries connected Monday.

On Chinese societal media, the U.S. president’s menace was met with a mixed response. Some net users said the 10% tariff could beryllium followed by a bid of duties imposed against Chinese goods, portion others criticized Trump for being unpredictable and inconsistent with his decisions.

“Why does the U.S. spell done each this trouble? In the end, the American radical are the ones who would person to wage due to the fact that if China doesn’t export goods, American radical won’t adjacent person Christmas trees,” Chinese net idiosyncratic Fortune Axe Brother wrote successful a station connected the Chinese societal media level Weibo.

Some analysts accidental the menace to enforce tariffs arsenic aboriginal arsenic Feb. 1 could beryllium the U.S. president’s “negotiating gambit” to unit concessions from China.

“Compared to the 25% tariffs that Trump has threatened to enforce connected Mexico and Canada, the 10% tariff connected Chinese imports seems similar Trump going casual connected China,” said Dexter Roberts, a non-resident chap astatine Atlantic Council’s Global China Hub.

In Roberts’ view, the menace reflects Trump’s tendency to “cut immoderate benignant of deal” with Beijing. “If China comes done with what Trump views arsenic concessions that are bully for him and the U.S., helium is precise apt not to prosecute those tariffs close away,” Roberts told VOA by phone.

While it remains unclear whether the U.S. volition travel done connected the threat, immoderate Chinese radical accidental their export businesses already person been affected by concerns astir imaginable U.S. tariffs connected Chinese imports since past year.

“Even earlier Trump’s latest comments, immoderate of our American customers had already pre-ordered a batch of goods from america since his predetermination triumph successful November,” a Chinese wintertime apparel exporter surnamed Yuan successful Shanghai, who asked to beryllium identified lone by his past sanction owed to information concerns, told VOA successful a written response.

Ahead of Trump’s inauguration, American companies accrued their purchases from China successful the past fewer months of 2024. China’s authoritative customs information shows that Chinese companies exported goods worthy astir $50 cardinal to the U.S. successful December 2024, marking a 10.7% summation from a twelvemonth before.

To debar the U.S. tariffs, immoderate Chinese companies person moved accumulation to countries successful Southeast Asia oregon Latin America, specified arsenic Vietnam and Mexico, successful caller years.

“After Trump launched a commercialized warfare against China during his archetypal term, immoderate of our American customers asked my institution to determination accumulation to Vietnam,” a manager astatine a user electronics shaper successful Guangzhou surnamed Li, who asked to beryllium identified lone by his past sanction owed to information concerns, told VOA successful a written response.

Despite these preparations, experts accidental Chinese businesses volition inactive conflict to woody with a imaginable commercialized warfare that Trump whitethorn motorboat against China during his 2nd term.

“Trump already has acquisition successful launching a commercialized warfare against China, and his medication is looking astatine targeting Chinese efforts to debar U.S. tariffs by perchance imposing tariffs connected Southeast Asian countries oregon Mexico,” He Jiangbing, an autarkic Chinese economical commentator, told VOA by phone.

Since China has mostly relied connected exports to thrust its economical maturation successful caller years, Roberts said imaginable tariffs imposed by the U.S. authorities could earnestly impact China’s economical growth.

“China’s export assemblage would beryllium deed hard by the tariffs and that means the full Chinese system would beryllium deed hard,” helium told VOA, saying the inclination would person a “knock-on effect” connected home consumption.

“Exporters are employers truthful they mightiness person to laic disconnected workers and chopped wages. People who person been laid disconnected whitethorn walk little wealth and that volition wounded the Chinese economy,” Roberts added.