Xiaochen Su
The latest actions from the Trump administration have reaffirmed the imperative for Chinese firms to reduce their dependence on the American market.
Trump’s 10% additional tariffs on all Chinese imports have predictably invited Chinese countermeasures. And markets remain fearful that Trump will continue threatening the 60% tariffs on all Chinese goods he promised to impose while on the campaign trail.
The risk of destabilization in Sino-American trade was further evidenced by Trump’s decision to scrap the $800 de minimis loophole on packages shipped into the US. If he did not hold implementation at the last minute, the US business of Chinese cross-border e-commerce firms like Temu and Shein, making up 60% of all de minimis packages, would have been wiped out overnight.
As Trump systematically restricts Chinese imports, European leaders may follow suit to stem a deluge of manufactured goods redirected from America. The European Union’s October 2024 decision to impose tariffs on “unfairly subsidized” Chinese electric vehicles may be a harbinger of an increasingly restrictive trade relationship with China, especially as Europe seeks to develop its strategic autonomy in high-value, future-oriented industries supporting its technological and green-energy ambitions.
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