It seems that the new president Donald Trump didn't manage to win the love of China yet, truly saying the idea of launching an all-trade war against China isn't something the country must really like. We remember the way China lashed out repeatedly the Asian country during the acrimonious race for the White House. The communist party leader voted for punishing Beijing with defensive 45% tariffs on Chinese imports and to officially declare it a currency manipulator.
US auto and iPhone sales in China will suffer a setback, and US soybean and maize imports will be halted. China can also limit the number of Chinese students studying in the US. China’s foreign ministry has used more diplomatic language to caution Trump not to square up to Beijing. All of these worries are expressed by a popular Australian newspaper. While we still are not sure about the current relationship of the new U.S. president and China, but we can say that he and Xi Jinping had a discussion, and Trump stated that he believes the two leaders will have one of the strongest relationships for both countries moving forward.
If he follows through on a 45% trade tariff then it will be damaging to our own interests and we will have fallout that will affect our own companies and our own economy and it won’t be effective. It will not achieve what he is setting out to achieve. Officials in Beijing are still battling to untangle what a Trump presidency means for relations between the world’s two largest economies but wager he is unlikely to follow through on his most radical campaign pledges such as imposing 45% tariffs on “cheating China”.
