Why China may not blink first
While the US has more to lose in terms of consumer disruption, Beijing’s hand is stronger than it may seem.
The US heavily relies on Chinese imports — smartphones, computers, and toys among them. That imbalance gives China leverage. Even before the 125% tariffs came into force, analysts warned the cost of the cheapest iPhone in the US could jump from $799 to $1,142.
“Trump cannot credibly deflect blame on to China for these economic hardships,” Choyleva noted.
In contrast, the US exports to China are mostly industrial in nature — soya beans, fossil fuels, jet engines — where rising costs don’t immediately hit the average Chinese wallet.
