In view of President Donald Trump’s “Liberation Day” Trade War, China has retaliated 34 percent of tariffs on imported American goods.
On 2 April, Mr. Trump announced an additional 34 percent tariff on all Chinese goods imported to the US at the top of the current 20 percent levy.
Now, China will impose 34 percent mutual tariff from April 10, in which China State Council Tariff Commission said it was coming back against “bullying”.
The Commission wrote in a statement, “This practice of America is not in line with international trade rules, seriously reduces China’s legitimate rights and interests, and is a specific unilateral bullying practice.”
In response to China’s new Levies, Mr. Trump wrote on Truth Social: “China played it wrongly, they were nervous – one thing they can’t do!”
Here, we look at areas that will be affected?
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.
American exports to China
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 $ 7.5BN to Cars to China, which will now be affected by its mutual 34 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.”
What about Chinese goods?
Of all countries with tariffs, Americans will feel the most – and soon the impact of China.
54 percent of the total tariffs on imported Chinese goods are the highest in any country. And more importantly, American consumer is highly dependent, through many parts of the supply chain.
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.
Cloth imports of $ 36BN value can also affect regular consumers; Especially more and more clothing brands import from China.
The US is also ending a discount that allowed low-value products to avoid tariffs.
This means that cheap, American-psandida brands such as Shin and Temu can face tariffs for the first time-and can be forced to increase their prices.
