The growing tariff war between China and the US has once again shaken the global business world. China’s top official Xia Baolong has reacted sharply to the US tariff policy, calling it “extremely shameful”. He said that the US is trying to snatch the soul of Hong Kong and this strategy is an attempt to intimidate China, which will never work.
Table of Contents
- What is the Matter?
- Xia Baolong’s Speech and China’s Stand
- Impact on Hong Kong
- Trump’s Sudden Tariff Policy Changes
- Harsh Response from China
- Economic Impact of the Tariffs
- Future Concerns and Investigations
- Conclusion: A Global Economic Conflict
What is the matter?
Recently, former US President Donald Trump has increased the tariff on Chinese products to 145%. In response, China also increased the tariff on American goods by 125%. China has taken this step in response to America’s policy of “pressure and intimidation”.
Xia Baolong, director of the Hong Kong and Macao Affairs Ministry under China’s State Council, said in a speech marking Hong Kong’s National Security Education Day, “China neither quarrels nor is afraid. The 5,000-year-old Chinese civilization is not afraid of US threats.”
Impact on Hong Kong
The US no longer recognises Hong Kong as an independent trading entity. Therefore, Hong Kong is subject to the same tariffs as China.
Hong Kong Chief Executive John Lee said that for now they will not impose any retaliatory tariffs and Hong Kong is still a free international trade hub.
Sudden change in Trump's tariff policy
Donald Trump has pursued a tariff-based policy since the beginning of his term:
- February 2025: 25% tariff imposed on goods coming from Mexico and Canada.
- March 2025: 25% tariff imposed on steel and aluminium.
- April 2, 2025: Declaring it as “Liberation Day”, a 10% minimum tariff was imposed on all imported goods and up to 50% tariffs on many countries.
Japan was given a 90-day exemption, but China got no relief. This resulted in a decline in financial markets and many experts have warned of a global recession.
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Harsh response
US Vice President JD Vance’s comment to China that the US “buys goods on credit from Chinese farmers”, had already sparked controversy. China termed it as insulting and racist.
Earlier, President Xi Jinping’s old comment is also going viral – “Storms cannot turn the ocean”, which China is considering as a symbol of its self-confidence and patience.
Future economic impact
Experts believe that these tariffs are affecting the global supply chain, which will increase prices and put a burden on consumers. Along with this, the news of the US starting an investigation into semiconductor imports has increased the concern further.
Conclusion:
This trade war between China and the US is not just a conflict between two countries, but it is affecting the entire global economy. While China is responding aggressively, the US is calling its policy “national interest”. Hong Kong once again seems to be caught between these two powers.
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