US Tariffs Stoke Unease Among Public, Businesses & Foreign Firms In China

From Kisho Kumari Sucedaram 

BEIJING, April 13 (Bernama) -- A sense of disquiet and anxiety is certainly spreading among the Chinese public following the barrage of US retaliatory tariffs imposed on China over the past week, unsettling markets and fuelling fears of a global recession.

With tariffs on Asia’s biggest economic superpower totalling a staggering 145 per cent, there is no denying that local businesses and foreign enterprises are sounding the alarm over the potential fallout from escalating trade tensions between Washington and Beijing.

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In imposing tariffs on 168 countries and dubbing it “Liberation Day for America”, US President Donald Trump has justified the sweeping import levies to counter against nations he claims have consistently “robbed and raped” the American economy, which he says is “suffering” persistent trade imbalances and unfair practices.

However, the callous way he has taken to resolve America’s trade problems and imposing the highest tariffs on China has stirred apprehension over the perceived broader impact on livelihoods, industrial performance, and foreign investment sentiment.

What’s even more striking is that while the President has delayed the implementation of tariffs for three months for all other countries, China has been pointedly excluded from this reprieve.

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Tariffs will raise costs, weaken purchasing power, and cut profit margins.

Norman Lim, a 42-year-old expatriate who has lived in Beijing for a decade, said the issue extends beyond policy and large corporations—the common man on the street is also feeling the strain, as rising prices, particularly for imported goods, threaten to erode their purchasing power.

Lim, who works at a mid-sized electronics firm in Daxing – a suburb located in southern Beijing, said higher tariffs might force the company to reduce production or delay expansion plans. 

“We have suppliers and clients in the US and every new round of tariffs cuts into our profit margin,” he told Bernama. 

Moreover, sentiment among industry associations in China has turned pessimistic as they strongly oppose the US decision to eliminate the tax exemption for low-value imports from the Chinese mainland and Hong Kong, effective May 2, 2025. 

The China National Textile and Apparel Council cited that the prevailing small-package tariff exemption policy is a globally recognised trade facilitation measure and argued that it should not be linked to tariff policies particularly in the spirit of promoting free trade.

The move is undermining the resilience of the global textile supply chain and harming all stakeholders, including businesses and consumers. 

The China Express Association, which represents the country’s postal and express delivery companies, has also voiced its dissatisfaction with the US decision. The association has expressed hope that the US would take necessary measures to create a fair and conducive environment for the development of cross-border e-commerce and international delivery. 

Joining the growing chorus of opposition against Washington’s tariff measures is Jens Eskelund, president of the European Union Chamber of Commerce in China, who believed that the tariffs could disrupt the supply chain operations of many European companies operating in China.

The European Chamber has over 1,700 members across the republic, including renowned names such as Volkswagen, Maersk, Siemens, and Nokia. 

Following Trump's announcement of the highest reciprocal tariffs against China, Beijing swiftly responded with its own set of retaliatory measures within days.

This led to a tit-for-tat tariff rebuke and as it stands now, Beijing has countered the 145 per cent reciprocal tariffs imposed against it with a 125 per cent import levy on American goods, declaring that it is not scared of American bullying and would fight Washington “till the end” on this trade war.

China to focus on strengthening domestic market

In response to mounting trade tensions, China has signalled a renewed commitment to strengthening its domestic market to cushion against external economic shocks and reduce its reliance on foreign trade.

Wang Peng, a research fellow at the Institute of State Governance at Huazhong University of Science and Technology and the Eurasian Research Institute, Renmin University of China, said the country’s policymakers are accelerating efforts to boost domestic demand and consumption as a way to counter the external trade pressure from the US. 

“China is taking steps to invest in domestic research and development, diversify its export markets, strengthen cooperation, broaden its network of trade partners, and pursue deeper regional economic integration,” he said.

Echoing this sentiment on the need to diversify markets, Prof Dr Wang Yiwei, director of the Institute of International Affairs and vice president of the Academy of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, said China has been a strong supporter of ASEAN in terms of trade and investment. 

“Pursuing deeper connection with ASEAN has been our ultimate aim to diversify the economy.

“Therefore, do not be afraid but be brave to face the challenges, be more independent, build more connections with other partners, and diversify the supply chain and de-risk from the US,” he said, in an apparent call to the Chinese people and other countries affected by the tariffs to reinforce their own economies, markets, and industriousness to stand up to the bullying ways of the US.

-- BERNAMA