Trump "Blasts" China: Are You Ready for This Wave of Tariff Impact?

On 30th May 2025 EST, a "shout-out" from Donald Trump once again ignited public opinion. He unceremoniously claimed that his high tariffs back then "virtually suffocated the Chinese economy," even leading to "factory closures" and "social unrest." He further emphasized that it was out of "goodwill" that he quickly struck a deal to "save" China, but now he finds China has "totally violated" the agreement!

These remarks are not just a reappearance of Trump's signature rhetoric; they are also paving the way for a new round of China policy. So, what exactly does this mean? Let's delve into a deep analysis.

I. Trump's "Trade War Memoir": Exaggerated, Yet Full of Implications

Trump's statement is replete with his typical "Trumpian style": highly exaggerated language ("virtually impossible to trade," "devastating," "cold turkey," "civil unrest"), and a self-centered narrative ("I saved them," "I made a fast deal"). He attempts to paint a picture of China's economy collapsing because of him, and then being rescued by him.

But beneath this ostentatious surface, we can discern his political intentions:

• Consolidate "America First" Image: He is reaffirming to his supporters that it was his tough trade policies that "saved" American interests and "tamed" China.

• Justify a New Round of Pressure: Accusing China of "total violation" is his way of creating a "legitimacy" and "moral high ground" for the new, tougher policies he is about to implement. "I was a nice guy, but you betrayed me, so don't blame me now" – this is a common opening gambit in his negotiations.

• Reiterate "Phase One Agreement": He re-emphasizes China's failure to fully fulfill its purchasing commitments, especially for agricultural products, under the "Phase One Economic and Trade Agreement" signed in 2020. This serves as powerful "evidence" for his accusation of China's "violation."

II.Trade War 2.0 coming

Combining his past rhetoric and policy tendencies, the future trade trajectory could look like this:

1. Tariff may be even higher

While there were legal challenges previously, he will now have greater power to push his high tariff policy, possibly by amending laws or invoking broader statutes to circumvent past judicial hurdles. This means all countries trading with the United States could face new tariff barriers.

2.Trade Negotiations Will Be Even Tougher!

Even if new trade negotiations occur in the future, the U.S. will adopt an even tougher stance. Tariffs will be the absolute bargaining chip, and the U.S. will demand greater concessions from China on deep-seated structural issues like intellectual property rights, market access, and state-owned enterprise subsidies.

3. China Will Continue to Retaliate, Global Economy Faces Impact!

Facing the escalation of U.S. tariffs, China will certainly not stand idly by and is expected to adopt reciprocal or asymmetrical countermeasures. These could include retaliatory tariffs on U.S. goods, restrictions on exports of critical raw materials, the introduction of an "unreliable entity list," and accelerated domestic industrial upgrading.

This "tit-for-tat" scenario will further exacerbate global economic uncertainty, push up global inflationary pressures, and impose significant burdens on both consumers and businesses.

III.Are You Ready to Face the Challenge?

Trump's recent remarks, and the policies likely to be implemented, indicate that the global trade environment is entering a more uncertain and challenging period. For businesses and individuals engaged in international trade, it is crucial to conduct risk assessments and formulate response strategies in advance.