PResident Donald Trump has carried forward his trade war with China, confirming a 125 percent tariff on imported goods in the US on Thursday.
It tops the Fentaneel trade for China’s alleged role in the current 20 percent levy, confirmed by the White House; Bringing tariffs up to 145 percent.
Now, Beijing has responded by matching 125 percent of tariffs on imported American goods.
Trade war will give a tough competition to American consumers, in which Chinese imports spread over the major industries and supplied apple iPhone to the firing line.
Chinese President Xi Jinping earlier said that at a meeting with the Spanish Prime Minister on Friday, “there were no winners in tariff war”.
Earlier this week, President Trump postponed the anti-anti-counter tariff to all countries except China, which has become a tight-for-tat levy exchange between the two countries.
The Chinese Commerce Ministry has warned, “If America emphasizes its way, China will fight till the end.”
Will Chinese goods be affected?
Of all countries with tariffs, Americans will feel the most – and soon the impact of China.
Meanwhile, as the world’s largest exporter, China sells products in almost every country. This adds a layer of economic security against Trump’s tariff, as the US makes only 14 percent of its goods exports.
145 percent of the total tariffs on imported Chinese goods are the highest in any country. And more importantly, through many parts of the American consumer supply chain, these items are highly dependent on these items.
Unexpectedly, electronics and machinery are the top goods imported from China to the US, which are alone at $ 208BN in 2023.
These products expand all the elements of the life of Americans; From computer to home appliances and electric batteries.
Smartphones are the largest single exports (9 percent of the total) – and not only Chinese brands like Huawei, but also American technical leaders including Samsung and Apple.
On a broader scale, drugs and medicines will possibly face a shock of value as pharmaceutical companies import billions in materials from China every year.
This expense will eventually fall for patients, Dr. Michael Aziz, a board-certified internist and regenerative medical experts warns.
,The effect of tariff on the prices of these drugs will be absorbed by most patients, retail pharmacies vs. insurance companies, ”said Dr. Aziz.
“I believe that the rapid application of those tariffs does not fully prepare doctors and patients. Many will leave their med if they cannot tolerate those generic medicines.”
Cloth imports of $ 36BN value will also affect regular consumers; Especially more and more clothing brands import from China, such as Nike and H&M.
The US is also ending a discount that allowed low-value products to avoid tariffs.
This means that cheap, American-pasted clothes and homeware brands such as Shin and Temu can face tariffs for the first time-and can be forced to increase their prices.
US-China trade relations
Previously, anti -retractor tariffs from China only covered specific industries such as fuel and agricultural products. Now, all American exports will be hit to China.
The US imports more than China than exports. According to the US Trade Representative Office, in 2024, the goods exported to China were $ 143.5BN.
Meanwhile, the US bought several goods ($ 438.9bn) three times in the same period.
This makes the trade deficit $ 295BN in 2024 – an increase of 5.8 percent from last year; And a major goal for President Trump.
This means that the US will be less affected by the retaliation, Dr. Shin Sun, a senior lecturer in Chinese and East Asian business in KCL, told that, told that Independent,
“Given the imbalance in trade between China and the US, the damage caused by the US’s retaliation is due to the impact of the US tariff on China, which is not only the highest in all countries, but also a wide range of regions.”
In addition, economic relations between China and the United States are already shrinking, and the US-China trade relations are less than five percent of global goods trade.
Simon Annit, Professor at the International Institute for Management Development, Jiopolitics and Strategy, said, “One important thing in the economic relations between these countries is from the part of the last decade.”
He said, “The disintegration is going well. Now what we are seeing is the next chapter in the process of decupping among these geophysical rivals,” he said.
Anti -anti -US industries
According to 2023 data from the Observatory (OEC) of the Observatory, about half of all the goods exported to China are centered within the major categories.
Top goods are export fuel products, including crude and petroleum oil, propane and liquefied natural gas, priced at $ 23.6BN in 2023 (latest available data).
While the US is a large buyer of machinery and electronics from China, it is also dependent on buying its technology on China.
China bought $ 17bn in machinery in 2023 and $ 12bn in parts from the US and $ 12bn in electronics.
The most affected by mutual tariffs are top products, integrated circuits and gas turbines.
While Mr. Trump was in a hurry to slap tariffs on foreign manufactured cars and parts, the US also exports $ 7.5 billion to Cars to China, which will now be affected by its mutual 125 percent tariff.
Other areas of the transport manufacturing sector, ie in aviation, are at risk of billions of dollars.
Pietersen Institute for International Economics Senior Fellow Dr. Mary Lovely said that the major American brand would suffer from changes.
“We had settled in a new routine, and now the situation was completely removed by tariff from both sides,” he told Independent.
“I think long -term, it actually reduces possibilities for companies such as Boeing. It is going to affect companies such as Apple and Caterpillar exports – also companies that (China) also export.”
The US Pharmaceutical Industry is also a major exporter to China, which in 2023 with more than $ 7.5bn vaccines and pack medicine, with $ 3.3BN in medical instruments.
American farmers prepared to suffer the most
Most, Dr. Lovely believes that the US agriculture sector will be killed the most by China’s tariff.
China is a top buyer of its botanical products ($ 20bn) – not at least US soy ($ 15bn), purchasing more than half of all American exports.
Arabs will also be affected in American meat and animal products, while Mr. Trump attempts to force the UK to buy chlorinated chicken in exchange for relief.
These tariffs on farmers can have a significant impact on the main political grounds of Trump, Dr. Sun warned, stating that agriculture is an important export from China.
Dr. Sun said: “Since agriculture is a lion part of American exports to China, China’s vengeance has a big impact on some basic political basis of Trump. By targeting this population, China expected to cause political pain for Trump and forced them to return to some extent.”
