China’s sweeping retaliation against President Donald Trump’s steep tariffs is expected to have a negative impact on US manufactured goods, petroleum, and agricultural exports. Both sets of measures are scheduled to go into force next week.
Beijing said it would put an equivalent universal duty on US goods, among other countermeasures, after Trump slapped a 34 percent additional tariff on Chinese imports, raising the total amount imposed this year to 54 percent.
China used to target specific industries in a “mirror response” to US export restrictions, said Emily Benson of consulting firm Minerva Technology Policy Advisors.
But its broader plan unveiled Friday marks a “pretty significant warning shot” to the Trump administration to hold off further measures, she told AFP.
What is the state of US-China trade, and what US sectors stand to be impacted?
US exports
The United States exported $144.6 billion in goods to China in 2024, much less than the $439.7 billion it imported, Commerce Department data shows.
In addition to oilseed and grains, important industries that contribute to its exports are electrical and electronic equipment and other types of fuel.
But compared to Trump’s first administration, when he waged a tit-for-tat trade battle with Beijing, China probably has more confidence to strike back this time.
“While the US is still obviously a very important market, fewer firms are now existentially dependent on US suppliers,” said Lynn Song, ING chief economist for Greater China.
She added that Beijing has also made efforts towards technological self-sufficiency.
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