China Stands Firm on Tariffs: Global Markets Brace for Extended Trade War Fallout -->

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China Stands Firm on Tariffs: Global Markets Brace for Extended Trade War Fallout

Berita Sesuai Mood
Tuesday, April 8, 2025


08 April 2025 — China has doubled down on its retaliatory tariffs against the U.S., escalating tensions and triggering volatility across global markets. As Washington prepares to impose 50% tariffs on $18 billion worth of Chinese imports starting 15 April, Beijing refuses to yield, signaling a protracted economic showdown. Here’s a breakdown of the crisis and its ripple effects:

Tariff Escalation Timeline
U.S. Triggers New Round of Tariffs


  • 50% Tariffs on Chinese Goods: Targeting electric vehicles (EVs), semiconductors, and medical equipment, effective 15 April.

  • China’s Immediate Retaliation:

    • 34% Tariffs: Applied to U.S. agricultural exports (soybeans, pork) and luxury cars.

    • Medical Equipment Ban: Blocking U.S.-made MRI machines and surgical tools in public hospitals.

    • Rare Earth Export Controls: Slashing shipments of critical minerals like neodymium by 40%, crippling U.S. EV and defense production.

Long Tail Keyword (LTK): impact of U.S.-China tariffs on medical equipment, rare earth metals trade war
Short Keyword (SK): China tariffs, U.S.-China trade war


Global Market Reactions

Stock Markets in Turmoil

  • Asia: Shanghai Composite (-8%), Hang Seng (-6.5%), and Nikkei (-4.2%) plummeted as investors fled risk assets.

  • Europe: DAX (-3.1%) and CAC 40 (-2.8%) dipped on fears of reduced Chinese demand for EU machinery.

  • U.S.: S&P 500 slid 2.5%, with tech giants like Apple (-7%) and Tesla (-12%) hit hardest due to supply chain disruptions.


Commodities and Currency Shocks

  • Copper Prices: Dropped 10% amid weak industrial demand forecasts.

  • Chinese Yuan (CNY): Weakened to 7.8 per USD, its lowest since 2022.

  • Oil Prices: Brent crude fell 5% to $72/barrel on recession fears.


EU’s Dilemma: Caught in the Crossfire

  • Tariff Avoidance Backfires: EU exports to China fell 15% as Beijing prioritizes cheaper Russian and ASEAN alternatives.

  • U.S. Pressure: Washington threatens 20% tariffs on EU steel if Brussels continues trading with Chinese tech firms like Huawei.

  • EU’s Balancing Act: Proposed “dual-track” policy—maintaining limited China trade while boosting partnerships with India and Mexico.


EU-China trade alternatives, India-Mexico manufacturing boom

China’s Strategic Moves

Rare Earth Dominance

  • Monopoly Leverage: China controls 80% of global rare earth refining. Restricting exports to the U.S. could delay Ford and GM’s EV production by 18 months.

  • Domestic Stockpiling: Beijing plans to increase state reserves of lithium and cobalt by 30% in 2025.

Silicon Valley Countermeasures

  • Apple accelerates plans to shift 25% of iPhone production to India.

  • Tesla halts Shanghai Gigafactory expansion, redirecting $5B to Mexico.


U.S. Domestic Criticism and Corporate Exodus

  • Business Backlash:

    • Amazon: Warns of 15% price hikes on electronics due to tariffs.

    • Boeing: Loses $12B China jet order to Airbus.


  • Political Divide:

    • Democrats call tariffs “economically suicidal,” while Republicans argue they “protect U.S. jobs.”

    • Ex-Treasury Secretary Janet Yellen: “This isn’t a trade war—it’s mutually assured economic destruction.”


Long-Term Projections

  • IMF Warning: Global GDP growth could drop to 1.8% in 2025 if tariffs persist.

  • Supply Chain Shifts:

    • 60% of U.S. firms plan to diversify suppliers outside China within 3 years.

    • Vietnam and Malaysia emerge as top beneficiaries, attracting $220B in redirected investments.


A High-Stakes Game With No Winners

China’s defiance signals a new era of economic brinkmanship. With markets reeling and industries scrambling, the path to de-escalation remains unclear. As the U.S. and China dig in, the world faces a stark choice: adapt to fractured trade norms or brace for a prolonged downturn.


How the 2025 Tariff War Compares to Past Trade Conflicts.