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Not only are the tariff rates much higher than the 7.5%-25% levied on China during his first term, the economy is also in a much more vulnerable position.
This is what is different:
In 2018, the property market was strong, driving about a quarter of China's economic activity. That meant local government finances, heavily reliant on auctioning land for residential projects, were not questioned so forcefully. This helped China absorb the tariff shock. But since 2021, real estate has been in a severe downturn and local government revenues have plunged.
Housing oversupply means this sector may never return to the driving seat of Chinese economic growth.
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