China Pushes Back as Trump Threatens 245% Tariffs
As Trump floats steep 245% tariffs on Chinese goods, China rebukes the move, warning of lasting economic consequences and global tension.
China Pushes Back as Trump Threatens 245% Tariffs
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As former President Donald Trump reemerges on the political stage, one of his signature tactics—punitive tariffs—is making headlines again. This time, it’s a proposed 245% tariff on Chinese imports. But Beijing isn’t flinching. Instead, Chinese officials are dismissing the move as a hollow threat, suggesting the policy is more political theater than economic strategy.
In a pointed response, China’s Foreign Ministry said the tariff threats have become a “numbers game,” devoid of genuine economic purpose. The ministry accused Washington of turning trade tools into weapons of coercion, reinforcing Beijing’s long-held view that these measures are driven more by ideology than commerce.
“China does not want to fight these wars but is not afraid of them,” the ministry said via state media outlet Global Times. “If the US insists on infringing China’s interests, our response will go to the end.”
Behind the Numbers: What the 245% Tariff Really Means
The 245% figure isn’t a single tariff, but a sum of multiple levies: a 125% base tariff, a 20% penalty linked to the fentanyl crisis, and various tariffs ranging from 7.5% to 100% targeting what the U.S. calls “unfair trade practices.” These proposed hikes would push the effective baseline tariff rate on Chinese imports to 145%, according to the White House.
To put this into perspective: prior to the Trump administration’s trade war in 2018, average U.S. tariffs on Chinese goods hovered around 3%. Today, many Chinese products entering American markets already face elevated duties. The proposed hikes would dramatically escalate those tensions—and not without consequences for both sides.
China’s Strategy: Calculated Calm and WTO Pressure
Rather than engage in rhetorical escalation, China is opting for a more measured tone publicly, while quietly taking the fight to international forums. It has lodged a complaint with the World Trade Organization (WTO), accusing the U.S. of breaching established global trade rules.
This isn’t the first time China has sought the WTO’s intervention. But with Washington growing increasingly skeptical of multilateral institutions, it remains uncertain how much sway the WTO still holds. Nevertheless, the move signals Beijing’s desire to frame the U.S. as a unilateral disruptor in global trade.
Trade experts suggest China is playing a long game. “By refusing to mirror Trump’s rhetoric, China hopes to isolate the U.S. diplomatically while avoiding immediate economic shocks,” says Dr. Susan Thornton, a former State Department official specializing in East Asian policy.
Who Really Pays for Tariffs?
While tariff threats often make for strong political talking points, economists warn they come at a cost—especially to American consumers and businesses. A 2019 study by the Federal Reserve Bank of New York estimated that U.S. consumers bore nearly the full burden of Trump-era tariffs through higher prices.
Industries ranging from electronics to apparel could face further strain. Retailers that rely on Chinese manufacturing may be forced to raise prices or switch suppliers—an expensive and time-consuming pivot.
Moreover, American farmers—who were hit hard by China’s retaliatory tariffs during the last trade war—remain wary. Although federal subsidies helped cushion the blow previously, many agricultural producers are reluctant to be caught in another geopolitical crossfire.
The Political Stakes: Tariffs as a 2024 Campaign Tool
For Trump, reviving tariff talk is more than policy—it’s politics. Positioning himself as tough on China plays well with segments of the American electorate, especially in battleground states where manufacturing jobs have dwindled. But critics argue that these policies hurt the very workers they aim to protect.
President Joe Biden, while less inflammatory in tone, has maintained many of the Trump-era tariffs. However, his administration has also sought to repair trade ties with allies and take a more collaborative approach to confronting China’s economic behavior.
With the 2024 election approaching, trade policy is once again becoming a flashpoint. And as both parties sharpen their China strategies, the risk of escalation remains high.
A New Era of Economic Brinkmanship?
At its core, the renewed tariff threats underscore a deeper shift in U.S.-China relations—one where competition has replaced cooperation, and economic leverage is increasingly wielded as a geopolitical tool.
Yet in this high-stakes environment, neither country can afford missteps. Prolonged tariff battles could disrupt global supply chains, heighten inflationary pressures, and destabilize already fragile economic recoveries.
While China says it will “ignore” the latest threats, its silence is strategic, not submissive. Beijing is betting that long-term diplomacy and economic resilience will outlast short-term American political theater.
Conclusion: Navigating the New Trade Terrain
As the U.S. ramps up its tariff rhetoric, China is choosing restraint—at least on the surface. But beneath that calm exterior lies a carefully calculated strategy aimed at minimizing disruption while protecting its economic interests. For the global economy, the question isn’t just who wins this trade standoff—but how many others will lose along the way. With election-season posturing in full swing, businesses and consumers alike would do well to brace for more turbulence.
Disclaimer:
This article is for informational purposes only and does not constitute financial, political, or legal advice. All opinions and interpretations are those of the author based on publicly available sources.
source : ABP – Live