Trump deals a blow to China's economy with his tariffs
Former President Donald Trump consistently utilized tariffs as a central component of his trade policy, particularly targeting China. During what sources describe as his second term, Trump initially imposed a 10% tariff on Chinese imports, which later escalated significantly. He reintroduced tariffs and doubled those related to fentanyl, raising them to 20% on all Chinese imports. In April, he announced 'reciprocal' global tariffs with a baseline of 10% for all countries, but set a specific rate of 145% for China.
Trump argued that China had been 'cheating the U.S. and other countries,' a situation he deemed unsustainable and unacceptable. These tariff actions have had a notable impact on China's economy, according to reports. The Chinese manufacturing sector has faced a significant slowdown due to increased costs for exporters caused by U.S. tariffs. China's Purchasing Managers' Index (PMI) fell to 49, indicating a clear contraction.
Major banks have reduced their growth forecasts for China. The National Bureau of Statistics of China reported continuous declines in industrial production and export orders. Robin Xing, chief economist for China, commented that the situation is 'definitely worse than expected' and 'shows that tariffs have started to bite.' It is estimated that reduced U.S. demand could jeopardize up to 16 million manufacturing jobs in China.
