Trump 2.0 is Here: How Chinese Foreign Trade Enterprises Can
2025-06-12 17:36
The final results of the U.S. election are in, with Trump returning to the White House. This will inevitably bring a series of impacts on China-U.S. trade, requiring Chinese foreign trade enterprises to stay highly vigilant and proactively adapt.
During his first term, Trump imposed multiple rounds of tariffs on Chinese goods. During his 2024 campaign, he pledged to levy 60% tariffs on Chinese exports. If implemented in his second term, this policy would significantly increase export costs for Chinese enterprises, eroding price competitiveness. Categories such as electromechanical products, textiles, furniture, lighting, toys, base metal products, and plastics are particularly vulnerable to U.S. tariffs.
Trump has also consistently advocated for "reshoring" U.S. manufacturing, urging American companies to relocate production and reduce reliance on Chinese suppliers. This could lead to reduced orders or the loss of long-term clients for Chinese exporters. Labor-intensive sectors like apparel and toys, with already thin profit margins, risk exit from the U.S. market if tariffs become unsustainable.
Beyond tariffs, the Trump administration may intensify non-tariff barriers, including stricter technical standards, environmental requirements, intellectual property restrictions, and product investigations. Chinese enterprises must adjust strategies promptly to mitigate risks.
Strategies for Chinese Foreign Trade Enterprises:
1. Diversify Market Layout
▪ Expand into ASEAN, BRI countries, and BRICS nations to reduce dependency on the U.S. market. Leverage international exhibitions, B2B platforms, and customs data to identify new clients and partners.
▪ Tap into domestic market potential to achieve dual circulation (domestic + international), enhancing resilience against external uncertainties.
2. Enhance Product Competitiveness
Increase R&D investment to develop high-tech, differentiated products with higher value-added. This can offset tariff costs while strengthening global competitiveness
3. Transshipment Trade to Circumvent Tariffs
Route exports through Southeast Asian countries for customs clearance before final delivery. Some firms also consider overseas manufacturing hubs. However, this approach carries risks; for example, the U.S. revoked tariff exemptions for solar panels from Vietnam, Cambodia, Thailand, and Malaysia after detecting transshipment circumvention.
Long-Term Resilience
Despite prolonged trade wars, China’s foreign trade sector remains robust. The country has diversified its export markets (e.g., ASEAN now accounts for over 50% of trade) and optimized industrial chains. By combining strategic countermeasures, domestic demand expansion, and technological breakthroughs, Chinese enterprises can transform trade pressures into opportunities for growth.