https://sputnikglobe.com/20251011/uss-new-china-tariffs-will-boomerang-back-on-americans-heres-why-1122943859.html
US’s New China Tariffs Will Boomerang Back on Americans: Here’s Why
US’s New China Tariffs Will Boomerang Back on Americans: Here’s Why
Sputnik International
President Trump postponed a meeting with China’s Xi and threatened new 100% tariffs after Beijing tightened export controls on rare earths. Here’s why the US's tough guy approach won’t work this time.
2025-10-11T15:35+0000
2025-10-11T15:35+0000
2025-10-11T15:35+0000
economy
donald trump
business
china
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Consumers Will PayTariffs on China have a nasty habit of hitting Americans’ wallets. The Bureau of Labor Statistics’ September report cited price hikes of 0.3-0.8% in a month on goods from clothes and electronics to toys.Some items’ prices jumped double digits in recent months.Strategic Industries at RiskChina’s past tit-for-tat retaliations triggered spikes in costs for an array of high-tech components and producer goods.ASML – the world’s sole maker of machines producing advanced semiconductors, fears rare-earth curbs could derail its business.Same goes for defense, where China’s rare earth dominance (70% of mining, 90% of processing) means the US MIC simply won’t have a suitable alternative to China-sourced minerals.From Inflation to Stagflation?Inflation has hovered around 2.3-2.9% under Trump.Some economists now fear tariff wars could trigger stagflation – high inflation coupled with high unemployment and economic stagnation.US Has Lost Its LeverageIts 40-year-old Chimerica strategy of offshoring to China in hopes that intertwining economies would make the US and China allies politically has failed to pay off.From consumer goods, components and machines making machines to rare earths and tech, the US needs China much more than China needs the US.Tariff wars will only push Beijing to forge even closer economic links with BRICS+ and the Global South, leaving the US high and dry.
https://sputnikglobe.com/20251011/us-to-impose-100-tariff-on-china-on-november-1---trump-1122940969.html
https://sputnikglobe.com/20251011/us-ready-for-trade-war-with-china---trade-representative-1122941095.html
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who will win in us china trade war, does us have leverage over china
who will win in us china trade war, does us have leverage over china
US’s New China Tariffs Will Boomerang Back on Americans: Here’s Why
President Trump postponed a meeting with China’s Xi and threatened new 100% tariffs after Beijing tightened export controls on rare earths. Here’s why the US's tough guy approach won’t work this time.
Tariffs on China have a nasty habit of hitting Americans’ wallets. The Bureau of Labor Statistics’ September
report cited price hikes of 0.3-0.8% in a month on goods from clothes and electronics to toys.
Some items’ prices jumped
double digits in recent months.
Strategic Industries at Risk
China’s past tit-for-tat retaliations triggered spikes in costs for an array of high-tech components and producer goods.
ASML – the world’s sole maker of machines producing advanced semiconductors,
fears rare-earth curbs could derail its business.
Same goes for defense, where China’s rare earth dominance (70% of mining, 90% of processing) means the US MIC simply won’t have a suitable alternative to China-sourced minerals.
From Inflation to Stagflation?
Inflation has hovered around 2.3-2.9% under Trump.
Some economists now fear tariff wars could trigger stagflation – high inflation coupled with high unemployment and economic stagnation.
Its 40-year-old Chimerica strategy of offshoring to China in hopes that intertwining economies would make the US and China allies politically has failed to pay off.
Redressing trade imbalances, rebuilding the manufacturing base and strengthening national self-sufficiency are in themselves inherently noble ideas. The problem is, at the macro level, the US no longer has the means, supplier ecosystems or skilled workforce to do so.
From consumer goods, components and machines making machines to rare earths and tech, the US
needs China much more than China
needs the US.
Tariff wars will only push Beijing to forge even closer economic links with BRICS+ and the Global South, leaving the US high and dry.
