Donald Trump's Tariffs May Be a Win for China

President Donald Trump's "Liberation Day" tariffs, which slapped significant duties on 180 countries, with the highest on Cambodia and Laos, may end up benefiting China and "undermine" U.S. relationships in the region, several experts told Newsweek.

Why It Matters

Trump on Wednesday announced the imposition of sweeping new tariffs on all imported goods and unveiled a list of "reciprocal duties" targeting China and other countries, claiming to combat trade imbalances and restore America's manufacturing industry. He hailed the tariffs as the country's "declaration of economic independence."

China, the world's second-largest economy, will face a 34 percent reciprocal tariff, which will kick in on April 9, and is in addition to a 20 percent tariff on the nation that is already in effect. The list claims that China charges a 67 percent tariff on U.S. products. Other Asian countries were also hit hard, with Cambodia facing the steepest new tariff of 49 percent, followed closely by Laos at 48 percent.

The U.S. and China have shared a tenuous strategic rivalry, with TikTok ownership, Taiwan and military activity in the South China Sea as major points of contention, and Trump often calling out China for unfair trade practices, among other topics.

While tariffs are expected to hurt China's economy, they may also create an opening for Beijing to strengthen regional alliances—potentially encouraging more countries to boost trade with China and scale back economic ties with the U.S.

What To Know

Asian countries—among the most significantly affected alongside several African nations—have played a "growing role in the global economy," Scott Kennedy, senior adviser and trustee chair in Chinese Business and Economics at the Center for Strategic and International Studies (CSIS), told Newsweek in an email.

He added that this integration has historically been "an important source of their economic development as well as a foundation for stronger ties with the United States."

However, he said that in contrast, "The Trump administration, instead, sees these countries as aggressors and itself as a victim in these relationships," leading to the sweeping tariffs that will heavily hit their economies.

Some of the affected countries, like Cambodia, are "already close to China," Yun Sun, director of the China Program at the Stimson Center, told Newsweek, adding that "the tariffs will further undermine their relationship with U.S."

Chinese President Xi Jinping will head to Cambodia and Vietnam later this month, potentially further solidifying Beijing's edge.

Eric Schluessel, director of the Sigur Center for Asian Studies at George Washington University, told Newsweek that for many East Asian countries, being "in the global supply chain is a matter of security," highlighting Taiwan's semiconductor production as an example. Their "silicon shield" establishes them as "a critical part of the American and global economies."

But, he noted, "the tariffs threaten to upend that order, in part by moving the manufacturing of vital products into the U.S.," adding that if the production shifts domestically, "Taiwan seems less important in the American geostrategic calculus," which could potentially strengthen China's claims.

Beijing considers Taiwan as its own territory—a claim the self-governing island rejects. Although Washington does not maintain formal diplomatic relations with Taipei, the U.S. remains Taiwan's largest supplier of foreign arms. The U.S. recognizes Taiwan as a key partner in the Indo-Pacific region and maintains a "robust unofficial relationship" with the island, according to the U.S. State Department.

Schluessel noted that while China has not "been a reliable partner for Vietnam," Trump's new 46 percent tariff "may force the country to change its traditionally flexible foreign relations to be more friendly to China."

Sun echoed similar sentiments, noting that "China is already reaching out to U.S. allies such as Japan, ROK [South Korea] and European countries to explore the alternative global order without U.S. as its leader."

"The reciprocal tariffs will give these countries a big push toward China to at least prepare alternatives. With the harsh policy of U.S., China suddenly looks much less hostile or evil," Sun noted.

On that point, China's Foreign Ministry on Wednesday posted a video to X, formerly Twitter, after the new tariffs were announced, portraying two different worlds under either Chinese or American stewardship.

The video targeted U.S. foreign policy and its tariff agenda, showing scenes of war, "exploitation" and "greed" linked to American involvement and asking viewers, "Do you want to live in a world like this?"

It then transitioned to more uplifting photos that promote international collaboration, pro-Palestinian protests, economic development, "shared prosperity" and "opportunity for all."

The video lasting less than a minute casts the U.S. and China in a global showdown—framing their rivalry as a battle for leadership and a struggle between competing moral visions for the world.

A slew of leaders have called out Trump's tariffs, with European Commission President Ursula von der Leyen saying on Thursday, "The global economy will massively suffer. Uncertainty will spiral and trigger the rise of further protectionism."

Several nations have already announced retaliatory tariffs, and China has said it will follow suit if the United States does not cancel the new measures.

What Happens Next

Schluessel noted that the tariffs and the administration's foreign policy "has made it clear that they are willing to upend any relationship for an unclear goal, or one that they expect to achieve only after years of chaos." The U.S. and Canada, longtime allies, neighbors and trading partners, now face a notably strained relationship after decades of close cooperation.

He added, "either way, Trump is turning already-jittery allies into America-skeptics."

On Thursday, Wall Street suffered its worst day since 2020 in response to the global trade news, with the S&P 500 index down 4.84 percent at market close. The tech-heavy Nasdaq tumbled 5.97 percent, which was its biggest drop since March 2020. The Dow Jones Industrial Average closed down 3.98 percent.