In the latest twist to the tariff saga, President Trump paused reciprocal tariffs for all countries except China – leaving in place a 10% base tariff – and exempted smartphones and other electronic products from reciprocal tariffs – including China. But Trump immediately warned “that nobody's is getting of the hook”, indicating that the exemption may only be temporary. President Trump called China “a hostile trading nation”. Imports of electronic products from China are still subject to the 10% base tariff and the 20% “fentanyl” tariff. The Chinese government called the exemption “a small step toward correcting its erroneous unilateral practice of ‘reciprocal tariffs’,” and insisted Washington cancel the whole tariff regime. There is no indication that China would scale back its own tariffs.
Prior to the latest announcement, China responded to the United States’ “reciprocal tariffs” by raising its additional tariffs on U.S. imports from 84% to 125%, effective April 13, according to an online notice issued by the Customs Tariff Commission of the State Council. The U.S. exemption includes laptops and machines to manufacture semiconductors. Most of the exempted items are produced outside America, with a major share in Asian manufacturing hubs, China in particular. China accounted for more than 40% of the United States’ global telecommunications equipment imports in 2024, along with 25% of computer imports and 36% of electrical machinery, according to figures from the U.S. International Trade Commission. Trump repeated last week that he “would love to be able to make a deal” with China. China’s Ministry of Commerce (MOFCOM) has also said the door remains open for talks but it has also vowed that the country will “fight to the end”. Kerry Brown, Professor of Chinese studies at King’s College, London, said Beijing and Washington would have to negotiate “at some point”.
Beijing’s latest countermeasures followed the U.S. move to raise the “reciprocal tariffs” on Chinese imports to 125% on April 10, which were added to a previous 20% for a total of 145% and an effective rate of about 156%. China's Tariff Commission added that, given that current tariff levels have rendered U.S. exports to China commercially unviable, China will no longer respond to any additional tariff increases the U.S. may impose on Chinese goods. However, if the U.S. insists on taking actions that infringe upon China’s legitimate interests, China will resolutely counter them and will not hesitate to fight to the end. China has noted that, under pressure from China and other parties, the U.S. has temporarily delayed the imposition of excessive “reciprocal tariffs” on certain trading partners. “However, this represents little more than a symbolic gesture and does not alter the fundamental nature of the U.S. approach – leveraging trade coercion to pursue its own interests,” noted a MOFCOM Spokesperson.
Despite ongoing challenges, China will remain a compelling market for U.S. companies. About half of the American Chamber of Commerce in China’s member companies still rank China among their top three investment destinations, said Michael Hart, President of AmCham China. With its strong focus on innovation, electric mobility and biotech, Hart said China will remain a key market for U.S. companies. “With the current global economic uncertainty intensifying, China’s market is expected to become a stabilizer of global business confidence, with its steady economic performance, business environment, technology and innovative capabilities,” said Sherri He, Managing Director for China at the U.S.-based management counseling firm Kearney,
Henry Ding, President for China at 3M, said that China’s pursuit of high-quality development presents significant opportunities for multinational companies like 3M. Investment in sectors such as automotive, energy and electronics all represent key growth areas for 3M. “We will continue to invest and expand our presence in the Chinese market,” said Ding. Noting that China’s growing focus on boosting domestic consumption will offer global businesses greater confidence, Joanne Crevoiserat, CEO of Tapestry, a New York-headquartered luxury goods group, said that China is her company’s largest market outside the US, and it is a major source of inspiration globally for its brands such as Coach and Kate Spade. She added that the company is on track to achieve its goal of opening 100 new stores in China between 2022 and the end of 2025.
It has been reported that the Washington-based United States Chamber of Commerce might sue the Trump administration to stop its sweeping tariffs, citing the potential for severe economic harm to both the U.S. and the global economy.
There are no winners in a tariff war and China is not afraid of unreasonable suppression, President Xi Jinping, calling on the European Union to work with China to jointly resist unilateral bullying. Xi made the remarks during a meeting in Beijing with Spanish Prime Minister Pedro Sanchez, the first time the Chinese leader has spoken in public on the tariff war launched by the United States on April 2. There is no winner in a tariff war and going against the world ultimately results in self-isolation, Xi said. He emphasized that China’s development over the past 70 years and more has been through self-reliance and hard work, never on others’ mercies, and it certainly does not fear unreasonable suppression. Whatever changes may take place in the external environment, China will remain confident, resolute and focused on running its own affairs effectively, Xi said.
The People's Daily has called on the nation to “weather storms together” amid an escalating trade war with the “capricious” Trump administration after the U.S. President warned that Beijing had miscalculated in striking back at his new tariffs. The article explained the rationale behind the Chinese government’s decision to strike back at U.S. President Donald Trump’s “reciprocal tariffs”. The editorial said the country would “resolutely” focus on its domestic situation in a bid to turn challenges from the White House’s tariff measures into a strategic opportunity. It also pointed to a battery of potential policy tools that could be used to mitigate shock waves on the Chinese economy from heightened trade tensions with the United States. America’s “abuse” of tariffs would impact China but “the sky will not fall”, said the article. China had reduced its reliance on the U.S. market, with exports to the U.S. as a share of total outbound shipments falling to 14.7% in 2024 from 19.2% in 2018.
As the world grapples with rising unilateralism and protectionism, China said multilateralism is the inevitable solution to the challenges facing the world and the country’s door to the outside world will only open wider. China’s policies to attract foreign investment have not changed and will not change. Speaking at a roundtable in Beijing with executives from more than 20 U.S. companies, including Tesla, GE Healthcare and Medtronic, China’s Vice Minister of Commerce Ling Ji reaffirmed the country’s commitment to reform and opening-up amid global trade tensions. Ling said China encourages U.S. companies to engage in fact-based dialogue and take practical steps to help safeguard the stability of global supply chains.
This overview is based on reports by the China Daily, the Global Times and the South China Morning Post.
