Washington is set to implement a massive 155% tariff on all Chinese imports, announced by President Donald Trump, with the new measures taking effect on November 1st. This stark decision follows Trump’s assertion that while he aims to maintain a cordial relationship with Beijing, the existing trade imbalance has left the US with no viable alternative. He argued that decades of unfair trade practices, enabled by what he described as “not smart” leadership, have allowed China to gain an undue advantage.
Trump reiterated his belief in tariffs as a cornerstone of national security policy, referencing his successful trade negotiations with other major economies. He anticipates a significant inflow of revenue for the United States, estimated in the hundreds of billions or trillions, which could be instrumental in reducing the national debt. This policy intensifies the focus on ‘secondary tariffs,’ aimed at countries that indirectly support Russia’s war efforts through energy trade. China, as a significant importer of Russian oil, is now subject to these particularly harsh penalties.
In addition to the import tariffs, the US will enforce export controls on all critical software starting November 1st. Trump publicly condemned China’s recent international missive regarding export restrictions, labeling it an unprecedented and morally bankrupt move. Despite the stringent economic actions, Trump expressed anticipation for upcoming diplomatic talks, including a planned meeting with President Xi Jinping in South Korea. He suggested that China is cognizant of the impending 155% tariff and views these negotiations as a critical juncture, noting the US’s strong standing ahead of the discussions.