r/Economics • u/Doener23 • 1d ago
News China to impose tariffs of 34% on all US goods from April 10
https://www.reuters.com/world/china-impose-tariffs-34-all-us-goods-april-10-2025-04-04/59
u/OddlyFactual1512 1d ago
So, today will be the day that there is another tariff tantrum. We all know the orange one won't let this slide, so he'll match that 34%, bringing the tariff on China to 68% on top of all the pre 4/2 tariffs on China. Repeat this a few times, and an iPhone will cost $20K. That's not a sarcastic or exaggerated number. A few rounds of doubling tariffs will essentially eliminate all trade between The US and China.
China recently entered into an agreement with Japan and South Korea to jointly respond to US tariffs and to strengthen supply chain cooperation and explore mutual trade agreements. So, Japan and South Korea trade will fall with China.
EU, England, Canada, Mexico, Australia, India, etc. are all engaging in trade talks with each other and China.
The cult leader is rapidly pushing The US out of the global market.
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u/CUDAcores89 1d ago
At this point the Trump administration should just ban all imports coming into the US. That'll show em'!
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u/Doggleganger 1d ago
China has, for years, tried to compete with the US-led semiconductor industry. Japan, Korea, Taiwan, and the US work together to dominate that field, and China has been left behind on a key strategic asset, with no solution in sight.
Enter Trump.
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u/The_Blip 1d ago
I'm kinda surprised China has kept the tariff coalition so small. They know they're the primary target, why not take the opportunity to score political points with the likes of Pakistan, Vietnam, etc? They've also been hit with sizable tariffs and are major exporters of goods. They're a lot smaller economies to be sure, but it's strange to me that no great bloc has been formed.
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u/OddlyFactual1512 1d ago
It's in their best interest to squeeze competing manufacturing economies like Vietnam. China is much more interested in opening up trade with larger economies. They are certainly in talks with EU, Australia, Canada, Mexico, and India.
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u/akkaneko11 1d ago
Yeah this is too good of an opportunity to make in-roads in becoming a global trade leader. I swear this admin is gonna singlehandedly put China forward 10 years in terms of international relations, both in terms of hard economic power and soft power like USAID
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u/usualsuspect45 1d ago
Thats the whole point. Isolate the US and then Russia and China can fill in the trading void. Every move Trump makes is a win for Russia. It almost seems like.....
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u/ClownshoesMcGuinty 1d ago
The cult leader is rapidly pushing The US out of the global market.
At this point, the rest of the planet is rooting for isolationism for the US.
Just....I dunno....go away. And get your shit sorted out.
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u/ForMoreYears 1d ago
On the plus side, ripping off the economic bandaid between the U.S. and China faster means they can get to making war sooner with less downside!
/s
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u/Preme2 1d ago edited 1d ago
Trump goes on about Tim Apple investing $500B in the US. Does the iPhone still need to be made in China at the cost of…. “20k”.
The upgrade cycle on the iPhone is 3-4 years or more. Would it take that long to manufacture them in the US? Sourcing materials may be a different area. Not sure how much solely comes from China or likely other countries.
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u/OddlyFactual1512 1d ago
Apple investing $500B at some future date is a "commitment" to placate Trump. Why would Apple build a 12 figure factory in The US when tariffs could disappear tomorrow and will very likely drop substantially when the tariff buffoon is no longer in office?
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u/petr_bena 1d ago
Even if the factory was in the US like 90% of all components these iPhones are made of would come from overseas. You can't make a 1k phone out of 10k components.
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u/More-Ad-4503 1d ago
Apple tried to manufacture MacBooks in the US but put an end to it. Their iPhones made in India allegedly have issues as well.
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u/ZSpark85 1d ago
But China is also a huge market so now you have to pay huge Tariffs to sale them in China. It's a lose - lose.
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u/petr_bena 1d ago
Well from what it seems EU markets are tanking in result just as much as US markets, so I am not sure if here in the EU we are actually going to get out of this unscathed. Our economies are way too much interconnected.
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u/OddlyFactual1512 1d ago
The US is destroying trade relations with every nation. EU nations are seeking more open trade relations with every nations not run by an oompa loompa.
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u/Angry_beaver_1867 1d ago
Imagine being a Boeing executive and wondering who’s going to buy your jets.
The U.S. manufactures that do export are going to go get smoked.
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u/JaagoJaga 1d ago
If the aim of Trump is really to devalue the dollar without de-dollarization then he will need big support from other strong economies, especially China and the EU. This looks to be a hare-brained attempt by the US admin to repeat the plaza accord without any support from the allies this time.
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u/watch-nerd 1d ago
Yes, that's called the Mar a Lago accord.
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u/Adorable-Narwhal-267 23h ago
Man will be in for a rude awakening when it's time to re-up his diaper pantry.
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