Overview and Background

Chinese officials have called on U.S. President Donald Trump to completely cancel the 145% tariffs imposed on imports from China, amid ongoing trade tensions between the two largest economies. Recently, Trump announced a 90-day pause on several global tariffs, while emphasizing that the tariffs on China would remain. The Chinese Commerce Ministry described the U.S. tariffs as a wrong practice and urged a return to mutual respect in trade relations.

As part of the tariff landscape, the Trump administration recently exempted certain technological products, including smartphones and computers, from the imposed tariffs. However, China deemed these exemptions a small step and is currently assessing their impact on its economy. The trade conflict has led to significant price increases for American consumers across various sectors, with many companies introducing surcharges to offset the costs incurred from tariffs.

Key Findings

• China's exports rose by 12.4% in March, despite the escalating trade war, while imports fell by 4.3% year-on-year.
• Trump's tariffs on Chinese goods have escalated to 145%, prompting China to retaliate with a cumulative 125% tariff on U.S. imports.
• U.S. consumers have begun noticing a tariff surcharge on receipts, affecting prices in industries such as clothing and electronics.
• The uncertainty surrounding U.S. trade policies has led to fluctuations in the stock market and consumer confidence, with the University of Michigan reporting a decline in consumer sentiment to near-record lows.
• The World Trade Organization has projected a potential 0.2% decline in global trade volume due to Trump's tariff policies, with North America facing the steepest declines in exports and imports.

"There are no winners in a trade war," Xi Jinping stated, emphasizing the need for cooperation in the global trading system.

As trade relations continue to evolve, both U.S. and Chinese officials are navigating complex economic landscapes, with potential repercussions for global markets and individual consumers.