US business community alarmed by tariff impacts

The United States business community has raised the alarm over the Trump administration's ongoing tariff war with China, warning that such policies could devastate more than $140 billion worth of US exports to China and jeopardize hundreds of thousands of jobs, ultimately undermining US global competitiveness.

The US-China Business Council released its "US Exports to China 2025" report on Tuesday, saying that in 2024, the total value of US goods exports to China was approximately $140.7 billion, while US services exports to China in 2023 amounted to $46.3 billion.

According to the report, China remained the third-largest market for US goods exports in 2024 and the sixth-largest market for US services exports in 2023. In addition, China ranks third among all countries in terms of American jobs supported by US exports, with over 860,000 jobs supported by goods and services exports to China.

Despite these significant figures, the report highlights troubling trends and potential future impacts of the tariff war. It notes a 2.8 percent contraction in US goods exports to China in 2024, even as global exports saw slight growth. This data does not reflect the US and Chinese tariff increases enacted in 2025, which are expected to further reduce US exports if they remain in place. The report warns that these trade barriers and escalating tariffs threaten to disrupt years of steady growth in US exports to China.

Since April 12, China has raised additional tariffs on products imported from the US to 125 percent, following the US' consecutive increases in the tariff rate on Chinese goods, which now stands at 145 percent.

The decline in US exports to China is further evidence that US businesses, farmers, ranchers, workers and consumers are reeling from the ongoing trade war between the US and China, said Sean Stein, president of the US-China Business Council, a nonpartisan, nonprofit association comprising more than 270 US companies that conduct business in China.

"If these tariffs remain in place, trade between the two countries will fall precipitously, sacrificing billions of dollars of exports and hundreds of thousands of American jobs, potentially destabilizing the US economy, and significantly weakening America's global competitiveness," he said in a news release on the council's website.

Experts pointed out that continued high tariffs would cause US exports to China to plummet, negatively affecting various US industries and related workers.

Luo Zhenxing, an associate research fellow at the Chinese Academy of Social Sciences' Institute of American Studies, said that the current prohibitive tariff levels would have multiple impacts on US businesses.

"The direct impact is a sharp decline in US exports to China," he said. "Moreover, much of US-China trade involves intermediate goods. Chinese retaliatory tariffs increase the production costs for related American manufacturers, affecting their global exports."

Luo further warned that losing the Chinese market would deprive US companies of economies of scale, leading to higher operating costs and hindering long-term development.

Sun Chenghao, head of the US-European Union program at Tsinghua University's Center for International Security and Strategy, said that export revenue is crucial for US companies' research and development funding.

"Losing the Chinese market will reduce revenue, likely leading to cuts in R&D and hindering new product and technology development, causing a long-term competitive disadvantage," Sun said.

"Moreover, as American goods are priced out of the Chinese market, competitors from Europe, Japan, South Korea and emerging economies will fill the void, gaining market share and becoming stronger globally, further undermining the global competitiveness of US companies," Sun added.

US agriculture will be among the industries hit the hardest, experts said.

yangran1@chinadaily.com.cn