Trump is preparing to impose a 10% tariff on Chinese goods. What do Americans think?

Washington — Mr. Liu, a resident of Virginia, recently bought a new phone and a new car over the past month, and he is glad he made these two major purchases before February 1. U.S. President Donald Trump recently announced a 10% tariff on all products imported from China, which could take effect as early as February 1. Mr. Liu, who declined to give his full name due to the sensitive nature of the topic, told VOA: "For things that are already expensive, adding 10% is not like buying a thermos and adding 10%; the price increase is significant. So I'm really glad I've already made these purchases. To be honest, when I bought them, I didn't think about a future tariff, so it was quite a coincidence." The day after Trump's inauguration, he said at the White House that the tariff measure was in response to fentanyl from China entering the U.S. via Mexico and Canada. Trump also said he plans to impose 25% tariffs on products from Canada and Mexico as punishment for allowing fentanyl and illegal immigrants into the U.S. Experts expect the new tariffs could lead to inflation in the U.S., but they believe this move is more likely the first step in Trump's negotiation strategy to bring China to the negotiating table. Supporters of the policy argue that Trump is fulfilling his "America First" promise. Will things get more expensive in the U.S.? During his first term, Trump imposed tariffs on more than $300 billion worth of products imported from China, and the new tariff measures will build on that. Former President Biden retained Trump's tariffs and added additional tariffs on electric vehicles, solar cells, semiconductors, and advanced batteries. Currently, the U.S. imposes a 100% tariff on Chinese electric vehicles, 50% on solar cells and semiconductors, 25% on critical minerals needed to make certain advanced batteries, and 25% on steel and aluminum. Some Chinese imports were previously exempt, but after Trump's 10% tariff, these exemptions will no longer apply. For example, consumer electronics, one of the main products the U.S. imported from China last year, with communication equipment accounting for 12% of the $401 billion in imports, reaching $47 billion, including products like phones, TVs, and satellites. The second largest category of imports from China is computer equipment, worth $39 billion, including laptops, tablets, monitors, and components like semiconductor chips. Next is "miscellaneous manufactured goods" worth $37 billion, including clothing, footwear, toys, and jewelry. William Reinsch, director of the International Business Program at the Center for Strategic and International Studies (CSIS), a Washington think tank, told VOA that the 10% tariff Trump plans is actually smaller than the 60% tariff he threatened during the campaign, and its impact will be relatively smaller. "This will cause inflation and raise prices here. Prices of many things people buy at retail stores will also rise. Clothing, footwear, household goods, and things like that will be affected. 10% is not a lot, but it's not zero either. I mean, it's not the worst," he said. U.S. inflation won't show up immediately. Because Trump signaled tariffs on China during the campaign, U.S. imports surged in the months before the inauguration, with many companies importing products from China and other countries to try to delay or avoid potential price increases. When will Americans feel the change in prices? Reinsch of CSIS said that many businesses, worried about tariff increases, have been stockpiling goods since last September as a precaution. It will take time for these goods to be sold, so price increases won't be obvious at the start of the new policy, but they may start to show after a month or two. Mr. Liu, a Chinese resident of Virginia, said he is indeed worried about the potential increase in living costs, but a 10% increase is still within an acceptable range. He believes this is mainly an attitude the Trump administration wants to show the public, demonstrating the new government's new vigor. "From another perspective, if he can lower my gas prices, then this 10% is nothing. If tariffs really have to be added, then relatively speaking, if other things get better, safety improves, and wars stop, I can accept it. If milk and eggs in the supermarket become cheaper, that's also OK. If there are other positive changes, I think it's all OK," he said. Trump fulfilling campaign promises? In theory, tariffs raise import prices, which can protect domestic manufacturers and punish foreign countries that engage in unfair trade practices, such as dumping goods at low prices or subsidizing exporters. California lawyer Liu Longzhu, a delegate to last year's Republican National Convention, praised Trump's expected new round of tariffs on China, saying Trump is fulfilling his "America First" promise, which will surely have a positive impact on U.S. manufacturing and protect American jobs. "With higher tariffs, Chinese products will lose competitiveness, making American products more competitive, and it will be easier for Americans to find jobs," Liu Longzhu told VOA. He believes Trump's tariff increase is not essentially targeting China but protecting U.S. interests. "Trump wants to protect U.S. interests. He wants to ensure first that American products can be sold, and second that American workers have jobs. From this perspective, his goal is not to attack China but to protect America," he said. Although the cost of tariffs may be passed on to U.S. consumers and prices are expected to rise, in Trump's view, the benefits outweigh the drawbacks, and higher employment also helps social stability, "it's not just about money." Stephen Lamar, president of the American Apparel & Footwear Association (AAFA), told VOA that raising tariffs theoretically gives domestic producers an advantage, but in reality, "more people are paying higher prices for products, no matter where they are made." He worries about broader inflation in the near future. He explained that tariffs increase costs along the supply chain, and these costs eventually pass on to consumers, usually leading to price increases, whether for imported or domestically produced goods. "What ultimately happens is, especially with a large supplier like China, when you raise the price of products imported from China, you also raise the price of products made anywhere else, including domestically made products and products made in other countries." Reinsch of CSIS is skeptical about whether the new tariffs can boost sales of U.S.-made products. "In theory, yes, but it takes time," he said. The new tariffs mostly affect labor-intensive products, but the U.S. is not a low-wage country. He said he would be surprised if the U.S. apparel industry revives after the tariffs. Tariffs are just a bargaining chip; 10% is the first step? However, Reinsch believes Trump's announcement of 10% tariffs on China and 25% on Canada and Mexico should signal the start of a new round of negotiations. The tariff measures serve as Trump's leverage to force negotiations on his terms, especially on immigration and fentanyl issues with Mexico and Canada. "Trump's strategy on these things is ready, fire, aim, not aim, then fire. He identifies a problem, takes action, and then negotiates. I think the purpose is to bring them to the negotiating table," he said. On January 26, after the Colombian government refused to accept two flights carrying migrants, Trump said he had ordered tariffs, visa restrictions, and other retaliatory measures against Colombia. On January 27, the White House said that given Bogota had accepted all conditions for the U.S. to deport illegal immigrants from that country, President Trump suspended the threat of a series of sanctions against Colombia on Sunday evening. The 10% tariff on China is lower than the 60% tariff Trump proposed during the campaign. Reinsch believes this is also for negotiation purposes, to avoid China losing the will to negotiate, and the 10% tariff may be to start the process. He said: "I suspect that on China, he has realized that 60% won't bring China to the negotiating table. It's prohibitive. It would make U.S.-China relations worse and make the Chinese less willing to negotiate, but that 10% won't have those downsides." Reinsch believes Trump is considering "another big deal" with Xi Jinping. During Chinese Vice President Han Zheng's attendance at the inauguration, he may have discussed tariff issues with the U.S. Vice President. Trump himself said that in a phone call with Chinese leader Xi Jinping before his inauguration, they discussed a range of thorny issues, including trade balance and fentanyl. "It sounds like Trump is again seeing himself as a dealmaker, and eventually he will resolve or settle our problems with China through some big deals," Reinsch said. Despite the inflation caused by tariffs, California lawyer Liu Longzhu and Lamar of AAFA also said this could be Trump's negotiation tactic. "From Trump's perspective, it is indeed necessary to do this to increase leverage in negotiations with China. But China will inevitably retaliate, and the two economies may decouple. The two sides can only continue negotiating and fighting in the process, trying to find the best balance in the game," Liu Longzhu said. Lamar of AAFA said the inflation from tariffs does run counter to Trump's goal of lowering prices. But the 10% tariff may just be the first step, and higher tariffs on China may follow to pressure the Chinese government to comply with U.S. policies. "We'll have to see if this 10% is the final result or just one of many possibilities. I suspect it's just one of them," he said. Possible impact on China. Reinsch of CSIS believes the new tariff measures may not necessarily push Chinese products out of the market, but they do mean reduced profits for China. "In any case, it means lower profits for China. In some cases, it may also reduce sales. I think apparel is a good example; people might look to other countries like Cambodia, Thailand, Bangladesh for products competing with Chinese apparel. So, it's not good news for China, but it's not as bad as the original 60%," Reinsch said. Products imported from China will become more expensive after tariffs, making them harder to sell in the U.S. Chinese companies may lower prices to offset tariffs, maintaining their U.S. market share by reducing profits. Zhou Yang, a lecturer in the Department of World Economy at Fudan University, noted in a study that Trump's tariffs on Chinese goods cause losses to the Chinese economy more than three times those to the U.S. California lawyer Liu Longzhu believes Chinese imports have always been characterized by low price and poor quality, with increasing cases of infringement and technology theft, and their low-price strategy has impacted U.S. manufacturing. He expects more "edge-ball" behaviors in the future, with Chinese manufacturers doing final processing in other countries before importing to the U.S., and the U.S. Department of Justice and Department of Commerce need to formulate new policies to counter this. Source: https://www.voachinese.com/a/trump--china-tariffs-americans-01-29-2025/7953074.html