US tariffs on Chinese imports could cost China up to 10 million jobs as trade tensions escalate to unprecedented levels with potentially devastating economic consequences.

At a Glance

• Treasury Secretary Scott Bessent warns China risks losing 5-10 million jobs due to escalating tariffs
• President Trump has raised tariffs on Chinese imports to 145%, while China retaliated with 125% tariffs on US goods
• The US, as a deficit country, imports significantly more from China than it exports, creating leverage in trade negotiations
• The US is actively pursuing alternative trade deals with India, South Korea, and Japan amid the China standoff

China Faces Severe Job Losses from Rising Tariffs

Treasury Secretary Scott Bessent has issued a stark warning about the impact of escalating US tariffs on China’s economy. According to Bessent, Chinese exports to the United States are becoming increasingly unsustainable under the weight of President Trump’s aggressive tariff policies, potentially costing China up to 10 million jobs.

Even with reduced tariffs, China could still lose approximately 5 million jobs, representing a significant blow to its export-dependent economy that has relied heavily on access to American markets for decades. The situation highlights the precarious position China finds itself in as trade hostilities continue to intensify.

The economic implications extend beyond job losses to potentially destabilizing China’s manufacturing sector, which has been a cornerstone of its economic growth strategy. With the United States importing significantly more goods from China than it exports there, American officials believe they have substantial leverage in these trade negotiations. This trade imbalance gives the Trump administration confidence that China will eventually need to make concessions to protect its economy from further damage as export-dependent manufacturers struggle under the tariff burden.

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Tariff War Reaches Unprecedented Levels

The trade dispute has escalated dramatically in recent weeks, with President Trump announcing widespread tariffs on April 2 targeting multiple countries, citing unfair trade practices. By April 9, the administration had increased tariffs specifically on Chinese goods to a staggering 145%, while reducing tariffs on other countries to 10% for a 90-day period. This strategic approach isolates China while providing negotiating room with other trading partners. The unprecedented tariff level represents one of the most aggressive economic actions taken against China by any American administration.

“I think that over time we will see that the Chinese tariffs are unsustainable for China,” said Scott Bessent

China responded forcefully by implementing retaliatory tariffs of 125% on American goods, creating significant challenges for US exporters hoping to access Chinese markets. This tit-for-tat approach has created a high-stakes economic confrontation between the world’s two largest economies. American ports are already reporting shipping slumps as businesses on both sides scramble to adjust supply chains and find alternative markets. The ripple effects are impacting global supply chains, with manufacturing companies in both countries facing difficult decisions about production and sourcing.

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US Pursues Alternative Trade Partnerships

As tensions with China intensify, the United States is actively diversifying its trade relationships by pursuing new agreements with other Asian nations. Treasury Secretary Bessent specifically highlighted progress in negotiations with India, suggesting it could become a significant alternative trading partner. Vice President JD Vance’s recent visit to India resulted in meaningful discussions with Prime Minister Narendra Modi, indicating serious momentum toward a potential trade deal. These strategic negotiations signal that the US is preparing for a potentially long-term realignment of trade relationships.

“So remember that we are the deficit country,” Bessent noted, explaining America’s position of leverage in these negotiations.

The White House has also reported significant advancements in trade discussions with South Korea and Japan, further demonstrating the administration’s commitment to building a coalition of trading partners less dependent on Chinese manufacturing. South Korea’s technological expertise and Japan’s advanced manufacturing capabilities make them particularly valuable partners as alternatives to Chinese supply chains. This multi-pronged approach suggests the Trump administration is implementing a comprehensive strategy to reduce American economic dependence on China while creating new opportunities with countries that have historically maintained strong security ties with the United States.