US-China Tariff Hikes "Unlikely" To Trigger Full-Blown Trade War, Analysts Say

By Thea Felicity

May 16, 2024 02:05 PM EDT

This photo shows a gerenal view of China's and USA's flags during a meeting between US Treasury Secretary Janet Yellen and China's Vice Premier He Lifeng at the Guangdong Zhudao Guest House in the southern Chinese city of Guangzhou, on April 5, 2024.
(Photo : Photo by PEDRO PARDO/AFP via Getty Images)

Earlier this week, VCPost reported that the US had announced higher tariff hikes on Chinese products. Electric vehicles will face a quadruple increase to 100% this year, alongside semiconductor tariffs surging from 25% to 50% by the following year.

Now, there were criticisms of this move. Many even believe that it's only an election strategy by the Biden administration. Strong reactions from China, including comments from Foreign Minister Wang Yi, were also pointed out. 

Analysts warn that there's a risk of escalation. However, both sides appear reluctant to let tensions spiral out of control. 

READ NEXT: China Slams New US Tariffs, Vows to Defend Economic Interests Amid Trade Tensions

US-China Will Not Have A Trade War

According to CNA News, the same analysts are also downplaying the likelihood of a full-blown trade war, citing a mutual interest in maintaining stable relations.

Analysts, instead, anticipate some retaliatory measures from China, potentially on a smaller scale, reflecting a tit-for-tat response. VCPost already reported that China already responded strongly by vowing to defend their rights in the context of economic interests. There has been no move from the country that is speculated to be "retaliative" yet.

However, experts acknowledge that the situation could still intensify if the US imposes tariffs on Chinese goods entering from other countries, complicating the trade relationship between the two further.

READ MORE: Biden Increases Tariffs on Chinese Electric Cars, Solar Panels, and More by 100%

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