In 2024 - 2025, the US has implemented a series of substantial tariff hikes on a wide range of Chinese goods. President Joe Biden's administration announced hikes on
For instance, the tariffs on certain steel and aluminum products more than triple, rising from the current range of zero to 7.5% to 25% in 2024. This is justified by the US on the grounds of "China’s non - market overcapacity in steel and aluminum, which are among the world’s most carbon - intensive." In the semiconductor sector, tariffs will increase from 25% to 50% by 2025, as the US claims that China's policies in the legacy semiconductor sector have led to growing market share and rapid capacity expansion, which risks driving out investment by market - driven firms. Electric vehicles are also hit hard, with tariffs increasing from 25% to 100% in 2024 (on top of a separate 2.5% tariff), citing "extensive subsidies and non - market practices leading to substantial risks of overcapacity."
China's Immediate Countermeasures
Tariff Retaliation
In response to the unjust US tariff hikes, China has not hesitated to take reciprocal actions. In 2025, when the US further increased its so - called "对等关税" on Chinese goods, China adjusted its own tariffs on US imports accordingly. On April 10, 2025, China raised the tariff rate on US - originated goods from 34% to 84%, as a direct countermeasure to the US's wrong - headed move. This is in line with China's legal rights under international law and its commitment to safeguarding its economic interests.
Strengthening the Domestic Market
China is also doubling down on efforts to strengthen its domestic market. By promoting domestic consumption, the country aims to reduce its over - reliance on exports, especially to the US. The government has rolled out a series of policies, such as tax incentives for consumers to purchase high - quality, energy - efficient products. These incentives not only boost domestic demand but also encourage Chinese manufacturers to focus on meeting the needs of the domestic market, thereby enhancing the resilience of the domestic economy.
Diversifying Export Destinations
Recognizing the importance of reducing dependence on a single market, China is actively seeking to diversify its export destinations. The Belt and Road Initiative (BRI) has become a crucial platform for China to expand trade ties with countries in Asia, Europe, Africa, and beyond. For example, China's trade volume with Southeast Asian countries has been on the rise in recent years. Through infrastructure cooperation, trade in goods, and services, China is building a more stable and diversified global trade network, which helps to mitigate the negative impact of US tariffs.
China's Long - Term Strategic Responses
Technological Self - reliance
One of China's long - term strategies is to achieve greater technological self - reliance. In the face of US restrictions on high - tech exports and technology transfer, China has significantly increased investment in research and development, especially in key areas such as semiconductors. The goal is to reduce dependence on imported technology and enhance the competitiveness of Chinese high - tech products in the global market. By developing its own core technologies, China can not only safeguard its national security but also gain more bargaining power in international trade.
Strengthening Free Trade Agreements
China is also actively involved in negotiating and strengthening free trade agreements (FTAs). The signing of the Regional Comprehensive Economic Partnership (RCEP) in 2020 was a significant step in this direction. RCEP has created a large free - trade area that includes 15 Asia - Pacific countries, providing Chinese exporters with preferential access to a vast market. By participating in and promoting FTAs, China can level the playing field for its exporters, counterbalance the impact of US - imposed tariffs, and contribute to the development of a more open and inclusive global trading system.
The US tariff hikes against China are a form of trade protectionism that goes against the principles of free trade and the multilateral trading system. However, China's responses, both in the short - term and long - term, are comprehensive and forward - looking. By taking a combination of retaliatory, market - strengthening, and strategic measures, China is well - positioned to navigate these challenges and continue to play a leading role in the global economy. As the situation continues to develop, it is essential for the international community to closely monitor the impact of these trade policies and advocate for a return to a more rational and rules - based international trade order.
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