The unpredictable White House returnee railed against major US trading partners during his campaign, vowing to impose blistering measures on China once elected.
After just six weeks in office, the new tariffs -- which Trump says are retaliation for Beijing's failure to stem the devastating US fentanyl crisis -- already surpass those of his first term.
"(This is) a move we see as signalling an aggressive stance," wrote Ting Lu, Chief China Economist at Nomura.
Tuesday's step adds to another blanket 10 percent tariff imposed last month, lifting average US levies on Chinese imports to around 33 percent, according to estimates by Nomura.
"The tariff hikes that Trump has completed on China are nearly double the size of the tariff hikes during his entire first term," wrote Lu.
Leaders in China -- an export powerhouse that has failed to achieve a strong post-pandemic economic recovery -- are nervously eyeing a renewed trade war with the United States under Trump.
The rubber-stamp National People's Congress is convening in Beijing this week for a key annual political conference, during which officials will hash out plans for how to boost the sluggish economy and respond to US tariffs.
Growth in the first quarter of the year is at risk of slowing, wrote Zichun Huang of Capital Economics.
"And that's before the hit from tariffs is felt in earnest," said Huang.
"Unless the leadership unveil greater-than-expected stimulus at the National People's Congress, it is hard to see how a slowdown can be avoided this year," she added.
- 'Crosshairs' -
Trump's first few weeks in office have seen him hit Canada and Mexico with even higher 25 percent tariffs, which also came in force on Tuesday.
And his initial salvos against China of two 10 percent tariffs are lower than the much more drastic 60 percent rate threatened during the campaign.
That has been interpreted by some as a sign that Washington is adopting a softer approach than expected in managing its rocky relationship with Beijing.
But experts say that China is likely to represent the new Trump administration's primary economic and geopolitical foe in coming years -- something that is obscured in recent weeks by domestic US issues and major developments in the Russia-Ukraine war.
"While Trump has shown some inclination towards making a fresh 'deal' with China on trade lately, the big picture is that the country is still very clearly in his crosshairs," said Thomas Mathews of Capital Economics.
"The threat of tariffs, export controls, investment restrictions, and the like is still a big downside risk, in our view, for investors in China's markets," he added.
Observers are also anticipating a tougher response by Beijing, which retaliated last month with targeted measures including 15 percent duties on US coal and liquefied natural gas.
Condemning the latest tariffs, Beijing vowed Tuesday that it will take retaliatory measures that will "resolutely safeguard its own rights and interests".
- More coming -
"US-China tensions may take centre stage in the coming months," said Lu of Nomura.
"This probably won't be the final tariff hike on China," wrote Julian Evans-Pritchard of Capital Economics, noting that Trump has threatened to impose "reciprocal" tariffs on various countries as soon as early April.
"China is not an obvious target for reciprocal tariffs given that it has lower duties on the US than vice versa," said Evans-Pritchard.
But there are other ways for Trump to further aggravate the trade war, he said, such as through targeted levies on specific goods similar to those imposed under his predecessor Joe Biden.
Trump may also seek to terminate China's status of having "permanent normal trade relations" with the United States, a move that would push the average levy on Chinese goods to above 40 percent, he added.
Chinese state-backed tabloid Global Times reported Monday that Beijing is now considering implementing its own measures in response to Trump's tariffs, citing "reliable sources".
"I think the policymakers and exporters in China already anticipated higher tariffs in the United States, and made plans accordingly," said Zhiwei Zhang, President and Chief Economist of Pinpoint Asset Management.
What are China's annual 'Two Sessions' meetings?
Beijing (AFP) Mar 3, 2025 -
Thousands of delegates from across China gather in Beijing from Tuesday as the country kicks off its annual legislative sessions, one of the most important political events of the year.
The meetings, known as the "Two Sessions", are concurrent gatherings of China's rubber-stamp parliament and a separate political advisory body.
Voting is tightly controlled and legislation is pre-approved by the Communist Party.
But the closely watched political gathering will still offer a window into the priorities of top leaders in the face of new geopolitical headwinds and efforts to reignite a struggling economy.
Here's what you need to know:
- What are the 'Two Sessions'? -
The first session, beginning Tuesday, is a gathering of China's political advisory committee, the Chinese People's Political Consultative Conference (CPPCC).
The group has in the past included celebrities such as action star Jackie Chan and NBA legend Yao Ming and its discussions are relatively low-stakes.
Representatives -- including from Macau, Hong Kong and Taiwan -- provide lawmakers with policy suggestions that, more often than not, have little impact on national policy.
All eyes, however, will be on the meeting of the National People's Congress (NPC), the country's top legislature, starting Wednesday.
Around two-thirds of the legislature's members come from the Communist Party.
No bill put forward by the party has ever been rejected by the parliament, which is why it is often described as a "rubber-stamp" body.
- How significant is it? -
The week-long meetings will mostly be held at Beijing's Great Hall of the People -- a cavernous building located at the western edge of Tiananmen Square.
China takes extensive measures to prevent any disruptive incidents from happening during the highly choreographed parliamentary sessions.
The meetings are tightly controlled and managed, with meticulous planning to ensure an image of political unity is portrayed.
State media promotes the gatherings as proof of the party's responsiveness to the people, despite its monopoly on power.
Police have been deployed and security tightened ahead of the event in the capital.
During the NPC's opening session, Premier Li Qiang will deliver a government work report, a speech expected to unveil key economic targets and outline plans to achieve them.
Foreign Minister Wang Yi will also hold a news conference during the event.
This year is expected to be the second consecutive one without a news conference with the premier -- once a highlight of the closing session.
- What are the top issues? -
Observers will be keeping an eye out for clues on the measures China will take to bolster its economy, which has struggled to make a full recovery since the pandemic.
The world's second-largest economy is grappling with sluggish domestic demand, a prolonged property sector crisis and high youth unemployment.
It is also facing the imposition of steep tariffs from the United States, which could hit hundreds of billions of dollars in trade between the two countries.
The conference will see Beijing set official growth targets for 2025, following a reported national GDP expansion of five percent last year -- the lowest rate since 1990, excluding the pandemic years.
China is also expected to announce its annual military budget, as Beijing eyes deepening tensions in the South China Sea and the Taiwan Strait.
Investors will also be watching for signs of further support for the private sector, following President Xi Jinping's recent rare talks with Chinese tech tycoons.
Investors were optimistic the meeting signalled a shift from Xi, who has strengthened the role of state enterprises and waged crackdowns on areas of the private sector undergoing "disorderly" expansion.
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