They can try selling to other customers, but US is still around 25% of global GDP and probably a larger percentage of the market for the components that have been tariffed. Chinese government would have to print a lot of money to make up for that, which causes it's own issues, especially when considering the amount of debt China has already racked up.
The point isn't for the government to skim 25%, it's to get China to trade fairly or if worse comes to worse bring manufacturing back to the US.
In the event of a trade war US has leverage because we have the market and a essential product, food. US consumers can live without another 42in tv, Chinese can't live without food and they are entirely dependent on importing that food.
The point isn't for the government to skim 25%, it's to get China to trade fairly or if worse comes to worse bring manufacturing back to the US.
In the event of a trade war US has leverage because we have the market and a essential product, food. US consumers can live without another 42in tv, Chinese can't live without food and they are entirely dependent on importing that food.