After Trump’s fees for the rest of the world, the flood of cheap Chinese goods is preparing economy

The Wall Street Journal, in an expanded report published on Friday, warned of a new wave of turmoil in global trade, against the backdrop of US President Donald Trump imposing unprecedented customs definitions on Chinese imports, with an average of about 70%, as of April 9.

The new definitions are part of a broad campaign targeting China as the “first geopolitical opponent”, according to Trump’s description. According to the report, these fees accumulated from 10% in February, then another 10% last March, added to previous fees from President Joe Biden’s era, which raised the general rate to about 70%.

Chinese goods flood

This American escalation would pay about $ 400 billion of Chinese goods previously allocated to the American market to search for alternative markets.

In 2024, the United States imported $ 440 billion from China, including a huge share of electronics, games, shoes, steel, iron, and even umbrellas (91% of US umbrella imports from China, according to United Nations International Trade Center data).

“The real games have not started yet,” said economist Michael Betis, professor of finance at Beijing University.

Expected repercussions

China, for its part, was quick to announce its intention to take “decisive counter measures”, without clarifying its details, while the Chinese Ministry of Trade indicated in a statement that “the experiment has proven that raising the fees will not solve the problems of the United States, but will harm its interests and undermine the global economy.”

Although Washington may not be able to replace all Chinese products easily, due to the dependence of its industrial companies on parts and components that are difficult to secure from alternative sources, the report shows that these fees will lead to stagnation in imports, which will push Chinese exports towards other markets, which will double trade tensions with other major economies.

The “Global Testalt Erttalt” data indicated that since 2018 China has become a target of about 500 investigations into anti -dumping issues, while Beijing continued to pump investments in advanced industries to reduce the impact of domestic consumption.

The economist at City Yu Xiangerong expected that these new fees would reduce Chinese growth by 0.5 and 1% this year unless Beijing takes additional motivational measures that include reducing interest and increasing government spending.

Global recession

The report indicated that countries such as Brazil, Mexico, Canada, the United Kingdom and the European Union have already started taking measures to protect their industries from low -priced Chinese products, while the European Union imposed fees on Chinese electric cars, and the British Trade Authority recommended imposing fees of 84% on Chinese excavators.

The new American drawings also included a number of allies such as Japan, South Korea and Vietnam. On April 3, Trump announced what he described as “Trade Liberation Day” about the imposition of a 10% unified tariff on the imports of all countries not covered by “mutual” definitions as of April 5.

In light of the limited markets capable of absorbing the surplus of Chinese industrial capacity, expert Brad will be pleased with the Council of Foreign Relations that the world “will not be able to easily absorb the upcoming shock,” warning of widespread repercussions on supply chains and global economic growth.

Wall Street Journal concludes that the global economy is standing in front of a difficult test, and the commercial confrontation between Washington and Beijing is taking more deep dimensions than the world has witnessed decades ago.