Tariffs on China: Global markets and leaders react

The Chinese government will have to be very careful in its approach to future trade talks with the Trump administration, analysts say.

“With the direct hit to China’s economy still manageable, President Xi has more to lose – not least in appearing personally to be caving in – than he would gain from making changes to industrial policies that both he and the White House hawks believe have served China well,” Julian Evans-Pritchard, senior China economist at Capital Economics, wrote in a note Friday.

“As such we expect the tariffs to go ahead and furthermore that they will be raised, to 25% on all Chinese goods imports to the US, before long.”

Analysts at Citi Research said in a report Friday that they believe “China will become more cautious in dealing with Trump on trade.”

“Rather than giving in to the US demand, we expect China will firm up its bottom lines and formally use the strategy of waiting it out,” wrote analysts Li-Gang Liu, Xiaowen Jin and Xiangrong Yu. 

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