Trump's tariffs aim at China and aspiring Asian countries

Trump's tariffs aim at China and aspiring Asian countries

President Donald Trump imposed tariffs of 54% on all imports from China to the United States on Wednesday. This measure is part of its comprehensive plan for redesigning American trade policy, which he calls "day of liberation".

consequences for trade relationships

The tariffs on Chinese goods that are the second largest importer in the United States to Mexico could lead to a fundamental change in relationships and further escalate between the two largest economies in the world.

China's reaction to the trade restrictions

China has repeatedly announced that it will continue to resign in response to American trade restrictions. The announcement on Wednesday increases the existing tariffs by 34% to the existing 20% tariffs to all imports from China. Since returning to power in January, Trump had already imposed two additional tranches of 10% tariffs to all Chinese imports that were necessary, according to the white house, to stop the flow of illegal fentanyl from the country to the USA.

production is shifted

In order to escape existing tariffs, some Chinese companies have shifted their production to other Asian countries. The new reciprocal tariffs, which Trump announced on other Asian nations on Wednesday, will also meet China: Vietnam is documented with tariffs of 46%, while Cambodian goods are taxed with 49%.

This development in trade policy continues to be pursued and the article is updated. David Goldman from CNN contributed to reporting.