Donald Trump has been very clear with his intention of deepening protectionism in the United States after he took over the presidency on January 20th. The politician has threatened to increase tariffs by 10% on worldwide imports and 25% on Mexican and Canadian goods. However, Chinese imports would be the most affected, as he has pledged to increase their import tariffs by 60%.
According to Statista, the United States was the world’s largest importer of goods in 2023, with a total value of 3.172 billion of dollars. Official data from the US Trade Representative showed that China, México and Canada are –precisely- the country’s top suppliers, with a summed share of 40% of total imports.
Regarding the concrete goods imported, Forbes published last month that the Yankees got from China mainly broadcasting equipment and computers; from Mexico, computers, cars and other vehicle parts; and, from Canada, mainly petroleum.
Although Trump and the Republicans will have control of basically all the powers of the country, it is still unclear whether he will be able to implement these “universal tariffs” or if it was just a campaign strategy. In either case, which consequences could they have if applied?
If trade with the United States becomes harder and more expensive for China, the Asiatic companies might decide to sell their products in other markets. The African countries could be one of the options, following the logic of the approaching policies that the country has already had with the continent due to its geopolitical and mineral interests.
Europe could be the other one of the answers. If China floods the “old continent” with cheaper technological products, it might have negative consequences for local industries, already damaged. European countries may find it difficult to compete with the pricing and scale of Chinese imports.
Given this situation, domestic manufacturers could be pressured to lower the prices through sacrificing quality and or through job losses. Resulting, in the end, in even more weakened industrial sectors and furthering the vulnerability of the continent to external economic policies.
Once Trump sits in the White House, the intensification of the commercial war between China and the United States is foreseeable. However, its consequences may be actually beneficial for the latter, as China may be able to win commercial and political influence in other markets and still maintain its position as one of the main world powers.
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