Fri, 31 Jan 2025

Trump's tariffs hit China hard before - this time, it's ready

Trump has threatened a 10% levy from 1 February - but his campaign included 60% tariffs against Chinese imports.
Key points: 1. Tariffs: The US has imposed or proposed various tariffs on Chinese goods, including a 10% blanket tariff that could affect many products. 2. Impact on suppliers and retailers: Suppliers like Mr. Huang face higher costs due to tariffs, which can lead to price increases for consumers. 3. Factory relocation: Many factories are relocating from China to countries like Cambodia, where they can avoid high tariffs. 4. Belt and Road Initiative: China's investment in infrastructure projects under the Belt and Road Initiative has given it more options to respond to trade tensions. 5. China's economic performance: Despite trade tensions, China's exports have been thriving, with a record $992bn trade surplus last year. Quotes: 1. "If you're making clothes in China under such tariff conditions, it's unsustainable." - Mr. Huang 2. "For example, Africa or Latin America. This is more difficult, but it is good to look at areas you have not explored before." - Kenny Yao from AlixPartners 3. "Americans still need to purchase these products," said Mr. Peng, hoping for an amicable discussion between the US and China to keep tariffs within a reasonable range. Questions: 1. How will Chinese businesses respond to the proposed 10% blanket tariff on all Chinese goods? 2. Will other countries follow the US in imposing their own tariffs on Chinese goods? 3. What are the potential consequences of trade tensions for global supply chains and economies?
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