Analysis: How China Should Counter Trump’s Threat of 60% Tariffs

China needs to increase self-reliance and boost domestic demand to offset U.S, tariffs, say analysts

Donald Trump speaks during a presidential election night event at the West Palm Beach Convention Center, Florida, on Nov. 6, 2024.

As Donald Trump returns to the White House threatening to impose tariffs of up to 60% on Chinese goods, China’s economy faces major challenges in the months ahead.

A team from the Institute of World Economics and Politics at the Chinese Academy of Social Sciences looks at how China should react to this “tariff shock 2.0”, highlighting the need for self-reliance and proactive efforts to boost domestic demand.

Timeline and scope