Cliff Notes
- A proposed 50% tariff on all Chinese goods, combined with existing tariffs, could result in over 100% tariffs, severely crippling trade between the US and China.
- China is poised to retaliate aggressively, potentially with measures including export controls on rare earth minerals and tariffs on US products, despite the risks involved.
- The situation raises concerns about broader economic and cultural decoupling between the two superpowers, with implications for global trade and international relations.
What China Could Do Next as Trump‘s Tariff War Ramps Up | World News
The severity cannot be overstated, if an additional 50% tariffs are levied on all Chinese goods it will decimate trade between the world’s two biggest economies.
Remember, 50% would sit on top of what is already on the table: 34% announced last week, 20% announced at the start of US President Donald Trump’s term, and some additional tariffs left over from his first term in office.
In total, it means all Chinese goods would face tariffs of over 100%, some as high as 120%.
It’s a price that makes any trade almost impossible.
China is really the only nation in the world at the moment that is choosing to take a stand.
While others are publicly making concessions and sending delegations to negotiate, China has clearly calculated that not being seen to be bullied is worth the cost that retaliation will bring.