It’s also a double gut punch for China, and its manufacturing subsidiaries in other countries.
China is extremely reliant on manufacturing exports. Their options such as finding new markets for these products is limited, because other countries want to maintain their industries too.
For example:
“BRUSSELS — The European Union on Tuesday reached out to Beijing for help in tracking a wave of Chinese imports that is expected to pour toward the EU after U.S. Donald Trump ramped up tariffs on China.
…
Should the diplomatic initiative with China fail, the EU would probably have to introduce “safeguard measures,” which are special duties intended block to sudden diverted trade flows.” [1]
Funny how it’s “safeguard measures” when the EU does it. Why would they need safeguard measures? They don’t want extremely cheap products? Anyway.
It’s kind of a judo move - using China’s excess manufacturing capacity against itself. The US can find other countries to manufacture goods over time and also manufacture them here. Prices will go up but it’s not the end of the world. Apple is going to serve 50% of the US market with Indian made iPhones, for example, where they face lower tariffs.
[1] https://www.politico.eu/article/eu-pencils-in-china-summit-f...
[2] I should note I’m not necessarily for or against these tariff actions, but the ongoing rhetoric around them has been kind of annoying and one-sidedly anti-American.
China is extremely reliant on manufacturing exports. Their options such as finding new markets for these products is limited, because other countries want to maintain their industries too.
For example:
… Funny how it’s “safeguard measures” when the EU does it. Why would they need safeguard measures? They don’t want extremely cheap products? Anyway.It’s kind of a judo move - using China’s excess manufacturing capacity against itself. The US can find other countries to manufacture goods over time and also manufacture them here. Prices will go up but it’s not the end of the world. Apple is going to serve 50% of the US market with Indian made iPhones, for example, where they face lower tariffs.
[1] https://www.politico.eu/article/eu-pencils-in-china-summit-f...
[2] I should note I’m not necessarily for or against these tariff actions, but the ongoing rhetoric around them has been kind of annoying and one-sidedly anti-American.