China has called for international solidarity to resist President Donald Trump’s sweeping tariffs, which have risen to a staggering 104% on Chinese exports. The tariffs, which have dealt a severe blow to Chinese businesses, come at a time when the country’s economy is already struggling with weak domestic consumption.
In a forceful editorial, the state-run China Daily proclaimed that “global unity can triumph over trade tyranny,” urging collaboration with countries like Japan and South Korea to counteract what it described as “hegemonic and bullying” practices by the United States. Beijing’s foreign ministry spokesperson, Lin Jian, reaffirmed the government’s opposition, stressing that China would “never accept” such measures.
The tariffs, which were introduced as part of Trump’s “America First” agenda, have sent shockwaves through global markets, with economists warning of potential recessions in both the US and globally. In addition to the 10% baseline tariff on nearly all foreign imports, countries like Cambodia, Vietnam, and Thailand now face even steeper tariffs, with rates reaching as high as 49%. This move has also affected other Asian economies, further complicating the global supply chain.
For Chinese businesses, the tariffs have already begun to erode profit margins, with many scrambling to adjust. A logistics company owner, who manages air and sea freight, explained that the higher tariffs are forcing companies to bear increased costs. “It just means everyone earns less,” he said, adding that any tariff exceeding 35% would wipe out profits, particularly for exporters to the US and Southeast Asia.
The impact is also being felt by companies like Fuling, a Chinese manufacturer of disposable tableware, which supplies fast-food giants such as McDonald’s and Wendy’s. The company, which generates a significant portion of its revenue from US sales, warned that the new tariffs would “significantly impact” its business. In an attempt to mitigate losses, Fuling opened a new factory in Indonesia last year, only to see those exports now subject to a 32% tariff.
While China has yet to announce retaliatory measures, there are reports that Beijing may consider actions such as banning Hollywood films or suspending fentanyl cooperation with the US. However, these moves would likely offer little solace to businesses struggling with the immediate financial impact.
The situation has sparked intense debates within China’s economic circles. Tim Waterer from brokerage KCM Trade suggested that the tariffs might force China to shift its economic model to rely more heavily on domestic consumption, which has been a persistent challenge. “The tariffs are aimed at suppressing China,” said one freight company manager, adding that many Chinese businesses had relocated to Southeast Asia, where tariffs are now biting hard.
The Chinese government has expressed openness to negotiations, but President Trump has not engaged in direct talks with Chinese leader Xi Jinping since returning to office. As the economic fallout deepens, the American Chamber of Commerce in China warned that such sweeping tariffs could cause more harm than good, creating unprecedented upheaval without clear benefits for consumers or economies on either side.
Economists predict that these high tariffs could lead to a decoupling of trade between the US and China, potentially bringing trade to a standstill. Wu Changchun, a freight company manager operating between China and Cambodia, noted that with tariffs as high as 104%, businesses can no longer absorb the cost through supply chain adjustments. “That’s full-on decoupling,” he said.
