The Chinese mainland has responded to escalating trade tensions by asserting that no party will emerge victorious in a trade war following U.S. President-elect Donald Trump's commitment to impose new tariffs on Chinese products.
Trump, set to take office on January 20, 2025, announced plans to introduce \"an additional 10 percent tariff, above any existing tariffs\" on goods from the Chinese mainland. He also declared a 25 percent tariff on imports from Canada and Mexico, aligning with his \"America First\" economic agenda.
Liu Pengyu, spokesperson for the Chinese Embassy in the U.S., emphasized the mutual benefits of China-U.S. economic and trade cooperation, stating, \"No one will win a trade war or a tariff war.\"
Last year, Trump proposed a universal 10 percent tariff on all imported goods. A November study by the National Retail Federation (NRF) warned that such tariffs could diminish U.S. consumers' annual purchasing power by up to $78 billion, affecting categories like apparel, toys, furniture, appliances, footwear, and travel.
While tariffs are initially absorbed by importers or intermediaries, the costs often shift to consumers through higher prices. Research indicates that the burden of tariffs is complex, with potential price hikes or relocation of production by foreign manufacturers. Additionally, a Reuters analysis highlighted that American consumers are becoming more budget-conscious, putting additional pressure on retailers and consumer goods companies.
Jonathan Gold, NRF's vice president of Supply Chain and Customs Policy, warned that the proposed tariffs would disproportionately impact low-income households by raising consumer prices. Furthermore, although Trump aims to stimulate investments and employment through tariffs, experts caution that retaliatory measures could lead to job losses in other sectors.
A study by the National Bureau of Economic Research in January found that the tariffs introduced in 2018 and 2019 under Trump did not create jobs in the intended industries but instead caused job losses in sectors affected by retaliatory tariffs, notably agriculture.
Reference(s):
cgtn.com