Trade Wars Begin – China’s Response to US Tariffs

Trade Wars Begin – China’s Response to US Tariffs

News Today: As US tariffs on Chinese goods take effect, China adopts a cautious stance.

If China is angry at the United States for imposing an additional 10% tariff on all Chinese goods, it is doing a good job of hiding it.

While Canada and Mexico quickly vowed retaliation, with Canadian Prime Minister Justin Trudeau announcing a 25% levy on $100 billion worth of US goods, President Donald Trump temporarily paused tariffs on both countries after separate agreements. However, tariffs on China are set to take effect today.

So far, Beijing has refrained from an immediate counterattack.

In 2018, when Trump first launched tariffs on China, Beijing boldly declared it was “not afraid of a trade war.” This time, however, China urges dialogue and compromise. Reports suggest a call between Trump and Xi Jinping could happen soon.

The Chinese economy is not as reliant on the US as it once was. Beijing has strengthened trade across Africa, South America, and Southeast Asia, now being the largest trading partner of over 120 countries.

According to Chong Ja Ian from Carnegie China, the 10% tariff may not be enough leverage to force Beijing into major concessions. “China will think it can endure 10%, so it’s playing it cool.”

However, Xi Jinping may see an opportunity here. Trump is creating tensions with US allies, even threatening EU tariffs. This could make China a more attractive global trade partner.

With the US freezing foreign aid programs, Beijing has a chance to step in, further shifting global influence. Trump’s “America First” policy may weaken Washington’s credibility, allowing China to push its global leadership ambitions.

As US-China trade tensions rise, the world watches closely. Will China retaliate or continue playing the long game?