Trump’s proposed 25% tariffs would ‘spare China’ but hurt its neighbours: analysts

US President Donald Trump’s latest tariff proposals – which involve slapping duties of 25 per cent or more on imports of cars, drugs and chips – are likely to hit China’s regional competitors harder than China itself, analysts said.

But Chinese companies tied into global supply chains could face unpredictable secondary effects if the moves go ahead.

During a Tuesday news conference at his Mar-a-Lago estate in Florida, Trump said his administration would impose tariffs of 25 per cent or higher on automobile imports to encourage companies to shift production back to the United States. A full announcement would come on April 2, he added.

The duties would have a minimal impact on China’s auto sector, according to Cui Dongshu, secretary general of the China Passenger Car Association.

“There are very few direct exports [to the US],” Cui said.

South Korea, Japan and Europe would be worst affected by the proposed auto tariffs, said Alicia Garcia-Herrero, chief economist for Asia-Pacific at French investment bank Natixis.