Trump's trade war with China may fail

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Trump’s trade war with China may fail

18-04-2025 15:16

Trump’s trade war with China may fail

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It is hard to believe, but US President Donald Trump, the architect of the global trade war, may ultimately lose the battle he started, especially against China. According to analysts at The Financial Times, Beijing could emerge as the winner in this high-stakes confrontation. China’s chances are strong, experts say. In contrast, Trump’s trade war strategy is destined to fail.

Analysts point to three key reasons why Trump’s campaign is likely headed for collapse.

First, world leaders are increasingly aware that many of the arguments put forward by the US president’s advisors are unsubstantiated and lack credibility. “So long as Trump is in charge, the US is unreliable and no sane leader will join him in a crusade against China,” The Financial Times notes.

Second, US foreign policy depends on the government bond market, which is now severely overextended. This factor significantly weakens Washington’s hand.

Third, China is well-prepared for a prolonged economic standoff aimed at draining US strength, the publication emphasizes. Far from being defenseless, Beijing has already responded in kind by raising import tariffs on American goods to 125%. China’s State Council Tariff Commission criticized Washington’s excessive tariffs, calling them a serious violation of international trade norms, fundamental economic principles, and basic common sense.

It is worth recalling that in early April, President Trump signed an executive order imposing new import duties on goods from 185 countries. The base tariff was set at 10%, but for several nations, including China, the rates soared to 30%–55%.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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