On the 20th (local time), U.S. President Donald Trump reaffirmed his stance on protectionist policies through his inaugural address. China, which is considered the top target of tariff attacks, is on high alert. Using state-run media, it has continuously conveyed a conciliatory message, stating it is willing to become a partner and friend to the U.S., interpreted as an attempt to lower tariff levels as much as possible. In particular, there is a sense of optimism that drastic tariff explosions may not occur, especially since Trump did not actually implement tariff increases on his first day in office, contrary to initial expectations.
In his inaugural address, Trump said, "I will immediately embark on a complete overhaul of our trade system to protect America's workers and families," adding, "Instead of taxing the American people to enrich other countries, I will impose tariffs and taxes on foreign goods to enrich the American people." He reiterated a plan to establish a 'Foreign Revenue Office' to collect tariffs and import taxes on all incoming revenues from foreign sources.
Immediately after the inauguration ceremony, Trump signed a memorandum regarding 'America First Trade Policy,' which calls for a review of existing trade agreements signed by the U.S. and recommending necessary or appropriate amendments to obtain or maintain "reciprocal and mutually beneficial concessions" with free trade agreement partner countries. The memorandum specifically mentioned China, Canada, and Mexico among the trading partners of the U.S. He also ordered an assessment of whether China is complying with the 'Phase One Trade Agreement' signed in 2020 during his first term. A 25% tariff on Mexico and Canada, the trading partners under the United States-Mexico-Canada Agreement (USMCA), will be imposed starting February 1.
Though Trump has not yet mentioned tariff increases against China, the country is paying close attention. This is because China is one of the primary targets of Trump's tariff policy. In 2023, China earned $279.4 billion (approximately 402.7 trillion won) from trade with the U.S., making it the largest trade deficit country for the U.S. Trump previously stated during the last presidential campaign that he would impose a general tariff of 10-20% on all imports and raise the tariff rate on all Chinese goods entering the U.S. to 60%. Immediately after the election victory, he declared that a 25% tariff would be imposed on Mexico and Canada, which have no tariff barriers under the USMCA, and an additional 10% tariff would be levied on China, which he had warned about high tariffs.
China is once again calling for a 'good start' in bilateral relations, trying to lower the level of Trump's tariff attacks. About three hours before Trump's inaugural address, state-run China Central Television (CCTV) stated, "China has repeatedly expressed its willingness to be a partner and friend to the U.S.," and added, "We hope the U.S. views China's development path and intentions correctly." It emphasized that "economic and trade relations are common interests of both sides," noting that "despite differences and frictions, mutual benefit and win-win is essential." Numerous state media had also issued messages emphasizing mutual growth the previous day.
CCTV also listed the trade achievements between the U.S. and China. The report indicated that trade between the two nations amounts to $660 billion (approximately 949.2 trillion won) and that there is bilateral investment of $260 billion (approximately 374 trillion won). CCTV reported that "over 70,000 U.S. corporations operating in China generate $50 billion (approximately 71.9 trillion won) annually in imports and support 930,000 jobs in the U.S. through exports to China." Therefore, it is not just China that benefits from trade between the two countries. It continued, quoting an expert, "If some Americans can think beyond a 'zero-sum game,' then U.S.-China cooperation has tremendous potential, achieving many significant, practical, and beneficial outcomes for both countries and the world."
There are also hopeful voices suggesting that the tariff policy targeting China has not yet taken shape. Chinese financial media outlet Caixin reported, "Recently, news has circulated that Trump's economic team is discussing options to gradually raise tariffs to avoid sharp inflation, and it is worth noting that Trump has not responded to this." Caixin stated that during Trump's first term, more systematic approaches to tariff increases, including trade investigations, were prepared, noting that "it took several months to complete investigations on steel and aluminum products at that time." Therefore, the likelihood of an immediate tariff explosion on Chinese imports is considered low.
The economic media outlet Caixin also highlighted that "The Wall Street Journal has pointed out that the market expects significantly less stringent and comprehensive (tariff) policies, and in the end, inflation caused by tariffs is expected to decrease significantly." Caixin noted that the strong dollar is putting pressure on the world and that Trump's tariff policy has had a major impact. The outlet observed, "On the 6th, when The Washington Post reported that Trump's tariff policy might be eased, Trump labeled it as fake news, causing the dollar to surge within just three hours." Considering this impact, it suggests that Trump will approach tariff imposition cautiously.