On April 10th, 2025, President Trump kicked things off with a hefty 125% tariff on Chinese goods. However, he excluded China from a 90-day pause applied to other countries.
Before that, he’d imposed a 34% tariff. This followed an earlier 20% rate. China didn’t sit quietly. They hit back with matching 34% tariffs. Then, Trump upped the ante. He pledged levies of 104%, then 125%, after China stood firm.
In response, China added 18 US companies to trade restriction lists. Plus, they rolled out further countermeasures. Now, with 84% tariff imposed on US imports into China, the stakes are sky-high.
The world watches anxiously as these two economic giants lock horns in what some are calling a battle for dominance, and others fear could spiral into a full-blown trade war with far-reaching consequences for businesses, consumers, and economies worldwide.
China’s position is crystal clear. A China Daily editorial put it bluntly: “Caving into US pressure is out of the question.” They’re not budging. Still, they admit there’s a cost.
Export industries are taking a hit. Investment might dip. Consumer confidence could waver too. The editorial also warned about the US’s bigger game.
They reckon the US wants to squeeze China out of its consumer market. Plus, reshape global supply chains. Yet, China’s not all defiance.
Meanwhile, China’s looking beyond the US. They’re cosying up to Asean nations. For instance, Commerce Minister Wang Wentao met Malaysia’s minister.
They talked deeper ties. Besides that, China’s restarting talks with the EU. Think electric vehicles and industrial cooperation.
They’ve also reached out to Australia. But Australia said no, sticking with its US alliance. Clearly, China’s playing a long game here.
Then came a twist. Trump announced a 90-day tariff pause for other countries. Markets loved it. Here’s how they reacted:
| Stock Market | Percentage Gain |
|---|---|
| Taiwan | 9.2% |
| Nikkei 225 (Japan) | 7.2% |
| Kospi (South Korea) | >5% |
| ASX 200 (Australia) | >6% |
| Hang Seng | 2.69% |
| Shanghai Composite | 1.29% |
| Dow Jones (US) | Nearly 8% |
| Nasdaq (US) | 12.2% |
Taiwan stocks soared 9.2%. Japan’s Nikkei 225 climbed 7.2%. South Korea’s Kospi gained over 5%. Australia’s ASX 200 rose more than 6%.
Closer to home, Hang Seng edged up 2.69%. Shanghai Composite ticked up 1.29%. Across the pond, the Dow jumped nearly 8%. Nasdaq leapt 12.2% – its best in 24 years.
But don’t pop the champagne yet. This is a short-term lift. The long-term picture? Still murky.
Others are reacting too. Japan welcomed the pause. Yet, they’re pushing for a tariff review on steel, aluminium, and vehicles.
The EU didn’t hold back. They greenlit 25% tariffs on US goods. That’s worth up to $23 billion (approx. SGD30.82 billion).
They’re targeting agricultural products and GOP state exports. Those kick in next week. Everyone’s picking sides in this global tug-of-war.
Singapore thrives on trade. So, this US-China clash hits close. For working professionals, investors, and retirees, here’s the deal.
Your business, portfolio, or nest egg could feel the ripples. You need to steer smartly. Here’s how:
Markets are jittery. Don’t put all your eggs in one basket. Spread your investments. Look beyond trade-heavy sectors. Tech or healthcare might be safer bets. For instance, if you’re a HENRY or FIRE type, tweak your portfolio now.
Knowledge is power. Follow trade updates. Read reliable news. Maybe subscribe to a trade policy newsletter. If you’re a mid-level manager or DINK, this keeps you ahead. You’ll spot risks – and opportunities – early.
Think big picture. Retirees, check your savings. Are they tariff-proof? Consult a financial advisor. Business owners, consider supply chain hiccups.
Singapore’s electronics sector, a big exporter, might struggle. Diversify markets or products. YOLOs, this is your cue to balance fun with future security.
Here’s a practical guide:
For example, an investor might cut US-China-exposed stocks. A business owner might source from Vietnam instead. Simple moves, big impact.
In short, China’s 84% tariff is a power play. Markets cheered the pause, but don’t be fooled. This trade war’s far from over.
For Singaporeans, it’s about staying sharp. Adaptable. Whether you’re climbing the career ladder, building wealth, or enjoying retirement, you’ve got this. Keep informed. Plan wisely.
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