President-elect Donald Trump has repeatedly said he thinks China is ripping the U.S. off, so during his campaign he threatened to impose a 45 percent tariff on goods imported from the country. But you can’t just impose a steep tariff without consequences, and Chinese communist party-controlled newspaper Global Times—yes, stick with me on this one—has outlined what those consequences could be. Here’s the Guardian’s analysis of that communique:
“If Trump wrecks Sino-US trade, a number of US industries will be impaired. Finally the new president will be condemned for his recklessness, ignorance and incompetence,” the newspaper said in an editorial.
The Global Times claimed any new tariffs would trigger immediate “countermeasures” and “tit-for-tat approach” from Beijing.
“A batch of Boeing orders will be replaced by Airbus. US auto and iPhone sales in China will suffer a setback, and US soybean and maize imports will be halted. China can also limit the number of Chinese students studying in the US.”
“Making things difficult for China politically will do him no good,” the newspaper warned.
China is one of U.S. automakers’ most promising markets, so if China retaliates on a U.S. tariff, that could have major financial consequences for the American auto industry.