Foreign tradeTrump presents tariffs as a miracle weapon against China
SDA
24.1.2025 - 05:11
Trump threatened tariffs during his first term in office - and made good on his threats. (archive image)
Keystone
The new US President Donald Trump has presented tariffs as a kind of miracle weapon against China. "We have very great power over China," Trump told US broadcaster Fox News.
Keystone-SDA
24.01.2025, 05:11
24.01.2025, 05:12
SDA
"These are tariffs. They don't want them, and I'd rather not have to use them. It's tremendous power over China," Trump said when asked if he could stop China's President Xi Jinping from taking Taiwan and reach an agreement on fair trade practices.
Trump had already threatened China with high tariffs shortly after his election. These could put further pressure on the already struggling Chinese economy - the USA is its most important export market. However, tariffs would not be without consequences in the USA either and would probably lead to higher prices and thus fuel inflation. Trump actually wants to prevent the latter.
Beijing could also consider responding not only with its own tariffs on products from the US, but also with targeted retaliatory measures, such as restricting the export of rare earths or stepping up investigations into US companies operating in China. Overall, relations between the two superpowers are likely to deteriorate further.