The Chinese government is enraged with the U.S.’ 104% tariffs on Chinese imports and has promised to take strict measures to safeguard its interests. President Donald Trump signed an executive order yesterday, imposing an additional 50% tariff on Chinese goods, effectively increasing the total tariffs to 104%. The total includes 20% imposed in Q1, 34% from the reciprocal tariffs round, and the 50% added last week.
A spokesperson for the Chinese foreign ministry stated that “the U.S. continues to abuse tariffs to pressure China” and that the country is determined to fight this kind of bullying. The spokesperson added that if the U.S. is keen to address the situation, it should do so through fruitful dialogue and negotiation, with an “attitude of equality, respect and mutual benefit.”
China’s High-Level Meeting for High-Level Stakes
According to Reuters, Chinese leaders were planning to hold a high-level meeting today to find a resolution to the issue, including the possibility of implementing export tax rebates. The meeting will focus on measures to bolster China’s stumbling economy, boost domestic consumption, and stabilize its capital markets, as the escalating trade war with the U.S. threatens to further disrupt the economy.
The report stated that the meeting was expected to be attended by Senior officials from the State Council, several governments, and regulatory bodies. China did announce counter-tariffs of 34% last week, in response to the reciprocal tariffs. Meanwhile, Chinese stocks found some relief as the state governments pledged to support the domestic market, and growing interest in the Chinese tech sector helped relax some of the tariffs’ concerns.
According to the economic research firm Capital Economics, China’s exports to the U.S. could decline by over 50% in the coming years if the newly imposed tariffs persist. Notably, these reduced exports could impact China’s GDP (gross domestic product) by roughly 1% to 1.5%, the firm added. Even if the U.S. negotiates on tariff reductions with different nations, cutting them by 10% to 20%, tariffs on China would still be the highest among the nations.
Which Chinese Stock Is Best to Buy Now?
We used the TipRanks Stock Comparison Tool for Best Chinese Stocks to understand which stock is most favored by analysts. Investors can consider investing in one of these stocks after thorough research.
Currently, Trip.com (TCOM), NetEase (NTES), JD.com (JD), and Alibaba (BABA) score Wall Street’s “Strong Buy” consensus rating, with BABA stock offering the highest upside potential among them.
