How Trump's tariffs could backfire and embolden China
Trump’s sweeping new tariffs aim to protect US industry. But experts warn they could accelerate China’s economic rise and reshape global trade dynamics.
US President Donald Trump has reignited his trade war with a sweeping package of tariffs — a move billed as protection for American industry but one that could backfire by emboldening China’s economic transition and triggering global ripple effects.
Announced on so-called 'Liberation Day', the tariffs take effect from midnight. A baseline 10% tariff will apply to all countries, which Trump said would mark the “rebirth” of American industry.
Additional measures include a 25% tariff on foreign-made cars and trucks, with further duties on automotive parts to follow in a month. Select countries face even steeper penalties. China, for instance, will be hit with a blanket 34% tariff.
Economists told Capital Brief that global responses will shape the impact on Australia — and there may be opportunities under this new protectionist US regime.
