How Will China Respond to U.S. Tariffs? Here’s What They Did to South Korea How Will China Respond to U.S. Tariffs? Here’s What They Did to South Korea – NTK Network

How Will China Respond to U.S. Tariffs? Here’s What They Did to South Korea

With U.S. tariffs expected to take effect in early July, China could be plotting its revenge now.

By NTK Staff | 06.20.2018 @3:00pm
How Will China Respond to U.S. Tariffs? Here’s What They Did to South Korea

How will China respond to President Trump’s 20-percent tariffs on Chinese goods? No one knows for sure, but a closer look at how the populous nation responded to a tiff with South Korea last year could provide clues.

Upset over the fact that South Korea deployed a U.S missile system, the Chinese government instructed its 1.4 billion citizens to boycott consumer goods from the peninsula nation.

A series of government-encouraged boycotts sent sales of South Korean-made Hyundais in China plummeting by more than half, decreased Chinese tourist traffic by more than 60 percent and temporarily shut down 55 supermarkets in China run by the large Korean retailer Lotte.

Should the U.S. expect the same? The answer is yes, according to sources who spoke to Politico.

Whether it’s encouraging Chinese consumers to give up their Big Macs, or making it harder for U.S. companies to open bank accounts, Beijing could rely on a number of tactics that have served it well in previous trade spats to turn up the heat on U.S. companies wanting a piece of China’s massive and lucrative market.

With a booming middle class and rising incomes, major U.S. companies have tied their future fortunes to the Chinese market. U.S. investment in China nearly doubled in the six years between 2009 and 2015 and represents a $550 billion market for U.S. goods and services.

China’s response thus far has been to threaten to implement its own tariffs on U.S. goods. However, the U.S. imports far more Chinese goods than vice versa, giving the U.S. the upper hand where tariffs are concerned.

That’s where the boycotts come in. The effects could be devastating to a company like Starbucks, which had plans to double its 3,300 Chinese stores. The same goes for iPhone maker Apple and automakers Ford and GM.

How China responds is anyone’s guess, but U.S. companies may be paying the price for these new tariffs.

Sign Up

for NTK updates every week.


View Privacy Policy