Trump backs steep China tariffs even as Shein and Temu hike US prices
Team Finance Saathi
30/Apr/2025

What's covered under the Article:
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Donald Trump defends steep 145% tariffs on Chinese goods, claiming China "deserves it" and will likely absorb the cost.
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Despite early consumer impact, Trump says the tariffs aim to address trade imbalances and revive US manufacturing.
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Retailers like Shein and Temu already pass tariff costs to American buyers, sparking inflation concerns amid stalled US-China talks.
Former President Donald Trump has once again stirred global economic waters with his strong stance on trade relations with China, defending his administration’s 145% tariffs on Chinese goods. In an exclusive interview with ABC News, Trump insisted these tariffs were not only justified but necessary to correct what he labeled as years of economic exploitation of the United States by China and other countries.
Despite growing concern over the immediate impact on US consumers, especially as Chinese retailers like Temu and Shein start passing the costs down the supply chain, Trump doubled down on his position, stating plainly: “They deserve it.”
“China Was Ripping Us Off”: Trump Justifies Tariff Regime
Trump stated during the interview, “China was making $1 trillion a year. They were ripping us off like nobody has ever ripped us off.” According to him, almost every country was taking advantage of America through unfair trade practices, and that’s no longer happening under his leadership.
While tariffs are traditionally viewed as taxes on imports paid by domestic consumers, Trump argues that China will "probably eat those tariffs" rather than passing the full burden to Americans. This assertion is controversial, especially as early signs of price hikes suggest otherwise.
Temu and Shein Already Increasing Prices
Popular Chinese e-commerce platforms such as Temu and Shein have already reacted to the increased levies. Known for ultra-low prices, Temu has reportedly passed most of the import tax increases on to American customers, making once-cheap products noticeably more expensive.
Likewise, Shein Group Ltd.—a dominant player in fast fashion—has increased prices in advance of the tariff hikes on small parcel imports. According to industry data, prices for the top 100 products in Shein’s beauty and health category have surged by an average of 51%, with some items more than doubling in cost.
These early indicators are contradicting Trump’s claim that the tariffs would have little effect on American consumers and instead pressurize Beijing to negotiate.
Is This a Near-Embargo? Trump Thinks That’s “Good”
When questioned about the sharp tariff levels, which many see as a near-complete blockade of Chinese exports, Trump confidently replied: “That’s good.” He emphasized that such an aggressive trade stance is necessary to address decades of imbalance and to protect US industries.
While acknowledging the "transition period" for Americans, he reiterated that these moves were part of his campaign promises to bring manufacturing jobs back to the US and to correct longstanding trade deficits.
Contradictions Within the Administration
Interestingly, Trump’s bold remarks come just days after his administration hinted at a more conciliatory approach. Reports from the Wall Street Journal revealed that the White House was exploring the possibility of phasing in lighter tariffs over five years to restart trade negotiations with China.
Additionally, Treasury Secretary Scott Bessent recently stated that the tariffs could result in 10 million job losses in China—a strategic pressure point aimed at forcing Beijing to the table. However, Bessent also declined to confirm whether actual negotiations were underway, leaving the diplomatic path murky.
Trump Remains Defiant Amid Inflation Risks
The American retail sector is now facing a period of uncertainty. With supply chains tied deeply to Chinese manufacturing, the new tariffs could result in widespread price hikes. Many economists warn that these actions risk fueling inflation, particularly among lower-income households who rely on affordable imports from platforms like Temu and Shein.
Still, Trump appeared undeterred. “You’re going to have a transition period,” he said, indicating that temporary economic hardship was a necessary price for long-term national gains.
Political Messaging Ahead of 2025 Elections
Trump’s statements are also being seen through a political lens, as the former President positions himself ahead of the 2025 elections. His narrative of economic nationalism, American manufacturing revival, and standing up to China remains a central theme of his campaign rhetoric.
By emphasizing the “ripping off” of the US economy and positioning himself as the leader who stood up to it, Trump is attempting to galvanize his voter base, especially in manufacturing-dependent states.
Tariffs as Leverage — But Where Are the Talks?
Despite frequent claims from Trump and his aides that China will return to the negotiating table, no formal trade talks have been confirmed. The current escalatory measures may be aimed at forcing Beijing's hand, but diplomatic channels appear to be dormant.
Meanwhile, Beijing has remained relatively silent, not publicly responding to the latest round of tariffs or making counter-threats—leading analysts to speculate whether China is reassessing its trade strategy or waiting for the US political dust to settle.
Conclusion: Economic Nationalism Versus Global Market Dynamics
Donald Trump’s aggressive tariff strategy marks a continuation of his commitment to economic nationalism, but its real-world consequences are beginning to materialize—most notably in the wallets of American consumers.
With Chinese e-commerce giants already raising prices and talks between the two countries yet to begin, the next few months will be critical in determining whether Trump’s gamble will yield diplomatic wins—or result in prolonged economic pain for American households.
As the situation unfolds, businesses, consumers, and policymakers alike will need to closely monitor price movements, supply chain shifts, and any signs of re-engagement between Washington and Beijing.
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