Trump proposes over 60% tariffs on China as markets anticipate major stimulus plan
Donald Trump has proposed tariffs exceeding 60% on Chinese goods following his election victory. Despite this, Chinese markets rose, with the CSI 300 Index up 3% and the Hang Seng Index up 2%, fueled by hopes of a $1.4 trillion stimulus plan.
China's top legislative body is discussing raising significant debt to support an economic rescue package. This optimism in Chinese markets contrasts with stagnant performance in Japan and South Korea, where major indices showed little change.
Analysts note that China faces challenges in a potential trade war, as it lacks the ability to impose similar tariffs on the U.S. Beijing has developed sanctions and export controls in response to U.S. policies but has limited leverage compared to previous years.