The United States hopes to increase fiscal revenue, narrow the trade deficit, and promote the repatriation of manufacturing through tariffs. It also hopes to maintain its advantages in key areas such as semiconductors by restricting the development of China's high-tech industries, and consolidate domestic support through tough trade policies, especially among agricultural states and manufacturing voters. Therefore, the Trump administration recently announced that the "reciprocal tariff" rate on Chinese goods exported to the United States will be increased from 34% to 84%, and plans to further expand the scope of tariffs, especially for key technology areas such as semiconductors and electronic supply chains. Trump hinted that the current exemption of some electronic products is only a temporary measure, and new tariffs may be imposed on products such as chips through "national security investigations" in the future.
The United States has imposed tariffs on almost all Chinese goods exported to the United States, and plans to further expand the scope of tariffs through "national security" mechanisms (such as Section 232 of the Trade Expansion Act). For example, the Ministry of Commerce may initiate an investigation into the impact of semiconductor imports on national security to pave the way for subsequent tariff increases.
In response, China has taken a number of countermeasures and reduced its dependence on the United States through strategic adjustments:
China's State Council Tariff Commission announced that from April 10, 2025, the tariff rate on imported goods originating from the United States will be increased from 34% to 84%, covering agricultural products, energy products, etc., and will initiate litigation through the WTO framework, jointly with the European Union and other trading partners to oppose US unilateralism.
Accelerate the development of the countries along the "Belt and Road" and ASEAN markets to disperse dependence on exports to the United States. In 2023, China's exports to ASEAN accounted for more than 15% of its foreign trade.
Promote industrial upgrading, increase exports of high value-added products (such as electric vehicles and photovoltaic products), and reduce the sensitivity of low-end manufacturing to tariffs.
Deploy production bases in Southeast Asia, Mexico and other places to avoid tariff barriers.
Accelerate the negotiations on the China-Japan-ROK Free Trade Area, deepen RCEP cooperation, and consolidate the position of Asia's supply chain center. Unilaterally open service trade to ASEAN and the EU to attract foreign investment and stabilize the industrial chain.
Promote cross-border RMB settlement and reduce dependence on the US dollar, such as piloting RMB pricing in energy transactions, and stabilize the stock market and foreign trade enterprises' capital chain through interest rate cuts, reserve requirement ratio cuts, stabilization funds and other tools.