Mon Nov 04 00:08:34 UTC 2024: ## China Trembles as Trump Threatens “Tariff War 2.0”

**Taichung, Taiwan –** Chinese businesses are bracing for a potential economic shock as former US President Donald Trump threatens to impose crippling tariffs of 60% or more on all goods imported from China. These tariffs, dubbed “Tariff War 2.0” by economists, could severely impact Chinese exporters who rely heavily on the US market.

Li Wei, owner of Hebei Yiyue Glass Products, exemplifies this concern. His company, which exports glass products to the US, has thrived in recent years, with the US accounting for 80% of its exports. However, if Trump wins the upcoming election and implements his tariff plans, Li fears his business could be crippled.

“Such a large increase in tariffs will definitely have a great impact on me and my business,” Li told Al Jazeera. “It will result in our products not being competitive, and at the very least our sales in the US will drop sharply.”

Experts agree that the impact would be significant. Gary Ng, a senior economist at Natixis, warns that “With tariff rates at 60 percent, many Chinese manufacturers would no longer be competitive or able to turn a profit from their exports to the US market.”

The potential consequences extend beyond individual businesses. UBS estimates that imposing a 60% tariff would lower China’s GDP growth by 2.5 percentage points over the next 12 months. This comes at a time when China is already grappling with an ailing property sector, low consumer confidence, and a struggling export-led development model.

While China is exploring alternative export markets, such as Africa and South America, it remains unclear whether they can compensate for the lost US market. Moreover, other countries, concerned about a Chinese surplus, are following the US lead and imposing their own tariffs.

Trump’s tariff strategy would also likely have negative repercussions for the US economy. The Peterson Institute for International Economics predicts a 0.4% rise in inflation and a 0.23% loss in GDP by 2027 if the tariffs are implemented.

Chinese officials have expressed their opposition to the proposed tariffs, emphasizing that protectionism will only harm global trade and stability. Meanwhile, Chinese businesses are left to grapple with the uncertainty and potentially devastating consequences of “Tariff War 2.0.”

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