China's Retaliation Against Trump’s Tariffs

Trump's tariffs on China begin as Mexico and Canada negotiations continue


US tariffs on global commodity prices ...

US President Donald Trump warned that he would impose tariffs on China, Canada and Mexico when he won the election back in November.

Over the weekend, he took the first steps in enacting that plan, announcing a levy of 25% on Canadian and Mexican imports, as well as an additional 10% tax on Chinese goods.

.This sparked a global sell-off on financial markets on Monday before an agreement between Trump and Mexican President Claudia Sheinbaum to halt levies on Mexican goods for one month brought some relief.

A few hours later, a last-minute call between Trump and Canadian Prime Minister Justin Trudeau resulted in a similar 30-day delay to taxes on Canadian goods.

But a US levy of 10% on Chinese imports has started today, which resulted in Beijing announcing retaliatory tariffs on a raft of American products.

In response to Trump’s recent tariffs, China has implemented countermeasures, including tariffs on key U.S. imports such as coal, LNG, and crude oil, along with export restrictions on critical minerals like tungsten. 


This strategic move appears designed to pressure U.S. industries while minimizing domestic economic impact. With its strong hold over global supply chains, particularly in technology and defense, China retains significant leverage. 


However, in the end, this still looks like a lose-lose situation for both sides.



Source: 

BBC News. (2025, February 4). Trump’s 10% tariff on China begins as Beijing plans retaliation on US energy and some cars. https://www.bbc.com/news/live/c8d90v1m6qvt


Comments

  1. pohchai9 February 2025 at 18:42

    An in-depth analysis on the lose-lose situation will be helpful.

    ReplyDelete

Post a Comment

Popular posts from this blog

IDCC Analysis: A Financial Equity Perspective

Image
Buy Recommendation: IDCC presents a compelling investment opportunity at $217.28 as of December 31, 2024. Its undervalued stock, exceptional profitability (58.15% EBITDA margin), explosive 58% revenue growth, and strong IP moat outweigh near-term risks. The projected 19.65% upside to $260 within 12 months (by February 19, 2026) is conservative, given IDCC’s potential to exceed 2025 guidance through new agreements and IoT expansion. Investors should monitor licensing renewals and litigation outcomes, but the risk-reward profile strongly favors a buy as of February 19, 2025. Business Overview  InterDigital, Inc. (NASDAQ: IDCC) is a global technology research and development company that focuses on video, wireless and AI technologies. Founded in 1972, the company stands as a beacon in driving foundational research in their key operations. Today, IDCC holds over 100 leadership positions in development organisations in this industry. Value Chain Business Model The company’s business mo...
Read more

NVDIA Analysis: A Financial Equity Perspective

Image
 Business Overview & Revenue Drivers Buy recommendation: Target price: $130. 10% upside NVIDIA Corporation ( NASDAQ: NVDA ) operates as one of, if not, the leaders of accelerated computing, whose expertise lies in four main market platforms: Data Center, Gaming, Professional Visualization and Automotive. Originally known for Graphics Processing Units (GPUs), NVIDIA has expanded into AI computing and cloud infrastructure, crucial to the company’s growth.  In the fiscal year of 2024, Revenue increased by 126% to $60.9 Billion with two main revenue drivers: Compute & Networking and Graphics.  Revenue growth in NVIDIA was backed up by the expansion of Hopper GPUs, Infiniband and Blackwell GPU architectures for training and inference in AI LLMs and Generative AI platforms. Additional sources include Cloud Partnerships and increased demand for NVIDIA's GPU, particularly the GeForce RTX 40-Series.  Key points to note include that the Data Centre has recorded the hig...
Read more

Why Ride a Rollercoaster When You Can Hold NVIDIA Stock?

Image
NVIDIA (NVDA) has been on a wild ride, but unlike a rollercoaster, this one has serious profit potential.  Recent developments—including  tariffs, China’s DeepSeek AI, and Alibaba’s AI push —have sent shockwaves through the market. Let’s break down what’s happening and why NVIDIA remains a key player in the AI race. Impact of Recent Tariffs The reintroduction of tariffs by the U.S. administration has created ripples across the technology sector. Although NVIDIA's direct exposure to China is relatively limited, the broader market sentiment has been affected. The tariffs have led to a sell-off in industries that facilitate and benefit from the AI boom, indirectly impacting companies like NVIDIA.  Emergence of DeepSeek AI Chinese startup DeepSeek has unveiled an AI model that has garnered significant attention. This development coincided with a substantial decline in NVIDIA's market value, raising concerns about potential shifts in the AI landscape. However, NVIDIA's strong ...
Read more