Let Donald Trump unleash his tariff blitz, China has already trade-war-proofed its economy

Such conflicts, after all, are counterproductive in the first place. Raising levies on imports simply increases costs for domestic consumers, more than offsetting the benefits that local producers may enjoy from the higher prices they receive from the shift in spending. The best solution is just to stand aloof from this contest of economic self-harm, however much you’re provoked.

That’s the case with most economies — but China, which has announced a 34% import tax against all US goods in response to President Donald Trump’s tariff blitz earlier last Wednesday, may be a rare exception. That’s because the world’s biggest manufacturer has spent decades building an economy that’s already largely war-proofed against blowback from its own trade practices.


Consider the main items the nations trade with each other. The major products that the US imports from China are mostly things you’ll find in a Walmart Inc., at a shopping mall, or on Amazon.com Inc.: smartphones, computers, games consoles, furniture, toys and clothing. Slap a 54% tariff on these items, as Trump has done, and American consumers are going to notice pretty soon.

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The flow in the opposite direction couldn’t be more different. Most of China’s major imports from the US are intermediate goods for its manufacturing industry, which would be almost impossible for an ordinary consumer to get their hands on, such as LNG and crude oil, silicon chips and chip-making machines, aircraft jets and plastics. The only real exception is cars — and, given the parlous competitive position of the US auto industry in China, wiping out the remnants of Buick, Chevrolet and Ford’s mainland markets might almost be a mercy killing.


An important thing to note in the