Tightening tariffs against China will lead to higher prices in the US. Such consequences of increasing tariffs on Chinese goods were named by Chinese political scientist Zheng Yongnian, his words are quoted by the South China Morning Post.
If the Donald Trump administration does raise tariffs, this could accelerate inflation, since American capital is not ready for new industrialization and it will not be possible to quickly find a replacement for many Chinese products in the country.
At the same time, Chinese businesses may consider expanding supply chains and production to cover the markets of the US, EU and Southeast Asia, opening factories locally instead of concentrating only on selling products.
Since March 4, the US authorities have introduced 25 percent duties on imported goods from Mexico and Canada, as well as new duties on products from China, raising the rate to 20 percent.