Trade War Continues With EU Tariffs on China. Here’s How China May Respond.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 10 2024
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Source: Barron's
- EU and U.S. Tariffs on Chinese Goods: The EU imposed tariffs on Chinese electric vehicles following the U.S., leading to concerns about China's response in the ongoing trade war.
- Impact on Chinese Economy: The new wave of trade restrictions poses challenges for Chinese companies seeking growth abroad, but the current tariffs are not expected to significantly harm China's economy.
- Potential Chinese Responses: China may rely on export tax rebates, currency devaluation, or other economic measures to counter the impact of tariffs.
- Risk of Supply Chain Disruptions: China could retaliate with tariffs on strategic industries like batteries or rare earth minerals, potentially causing supply chain disruptions and inflation.
- Uncertainty Post-U.S. Election: China's response will depend on the U.S. election outcome, with potential non-trade reactions such as disinformation campaigns or domestic self-reliance efforts.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
