How Much Could Trump's Multibillion Tariffs Really Cost China?

© AFP 2023 / PHILIPPE LOPEZChinese investors monitor screens showing stock indexes at a trading house in Shanghai
Chinese investors monitor screens showing stock indexes at a trading house in Shanghai - Sputnik International
Sputnik spoke with Pauline Loong; the managing director of the Hong Kong-based economic research consultancy Asia-analytica to find out more about Trump's tariffs policy towards China.

Donald Trump has paved the way for a possible trade war with Economic rivals China by ratifying a decision to impose tariffs on Chinese products.

China is set to overtake the United States in the near future as the world’s strongest economy, and these protectionist policies enacted by Trump may be a last ditch attempt to slow down the progress of Beijing’s rapid ascension to the premier global economic power. Trump’s sanctions will not be without ramifications however, with President Xi’s China expected to retaliate strongly.

Sputnik: Why has the USA decided to impose these economic tariffs on China?

Pauline Loong: The trade gap between the two countries has been a constant source of irritation for President Trump and no previous president has acted directly against China in recent years. The fact that Trump is in power guarantees that the US would act in his way, as he tends to be dramatic in foreign policy decisions.

Sputnik: How will China respond to the $50 billion worth of tariffs intellectual property imposed by the USA?

Pauline Loong: China will do its best to try and defuse the situation, China doesn’t want to hit back, it wants markets. China doesn’t want to get into a chest thumping competition; it wants to continue to persuade Americans to buy Chinese goods.
The fact that China responded with tariffs of only 3 billion dollars on US goods is testament to his policy.

Sputnik: Will these tariffs severely damage China’s economy and could they still overtake the USA as the world’s strongest economy?

Pauline Loong: If this carries on, it’s going to be a drag on the Chinese economy and a drag on investment, due to business uncertainty. The impact at this stage is that it will make life more difficult for China, as it is already facing other challenges as it aims to boost its economy.

The views expressed in this article are solely those of the speaker and do not necessarily reflect the official position of Sputnik.

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