Digital silk road: How social media is outsmarting Trump’s tariffs

What happened Donald Trump has imposed new tariffs on Chinese imports, slapping a 10% duty on all goods from China as part of a broader trade crackdown. The move, which also includes 25% tariffs on imports from Canada and Mexico, is being justified under the International Emergency Economic Powers Act (IEEPA), with the White House citing fentanyl production and illegal immigration as national security threats. China’s Ministry of Foreign Affairs immediately condemned the move, calling it an unjustified economic attack and warning of “necessary countermeasures.” Beijing is expected to retaliate, possibly targeting key U.S. exports such as soybeans, semiconductors, or American brands with a strong foothold in China. Meanwhile, legal experts say Trump’s use of IEEPA for tariffs is unprecedented and could face court challenges. While U.S. presidents have used the law for sanctions, applying it to trade duties could set a new legal precedent. The Jing Take This marks a dramatic escalation in U.S.-China trade war tensions, just as both economies are struggling with domestic challenges. China, already facing a sluggish post-pandemic recovery, could see further pressure on its export sector. Trump’s latest move has stoked much speculation over how China will respond. If Beijing follows through with countermeasures, U.S. industries reliant on Chinese goods — including electronics, auto manufacturing, and consumer goods — could face disruptions. A tit-for-tat conflict could also impact American brands, such as Tesla, Apple, and luxury fashion labels, which generate significant sales in China. On Xiaohongshu, discussions around Trump’s latest tariffs have quickly evolved beyond economic analysis into practical workarounds, with U.S. users tapping into Chinese networks to find ways to circumvent the new import duties. A thread with over 300 comments has turned into a guide on alternative purchasing methods, including proxy buying — where a Chinese shopper purchases goods on behalf of a U.S. buyer to sidestep direct import fees — and the “daigou” or gray market system, once used primarily for luxury reselling but now being repurposed for everyday essentials. Some users are even discussing peer-to-peer shipping arrangements, where Chinese friends or family send items as personal “gifts” to avoid customs scrutiny. As for U.S. consumers, tariffs act as a tax on imports, meaning Americans will likely bear the brunt of higher prices. Goods like smartphones, electronics, clothing, and household appliances are likely to become more expensive, adding to inflation concerns. With Europe also considering trade measures against China’s EV and tech sectors, Trump’s tariffs could push Beijing to diversify its export markets or shift supply chains. A prolonged trade dispute could slow global economic growth, affecting investors, businesses, and consumers worldwide. But China has been here before, and learned valuable lessons from its first trade spat with the convicted felon. With Trump indicating that tariff hikes could increase if China retaliates, the world is watching how Beijing will respond. If a full-scale trade war resumes, U.S. businesses, Chinese companies, and global markets could face significant disruptions – with American consumers ultimately paying the price. The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

Digital silk road: How social media is outsmarting Trump’s tariffs

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Published February 03, 2025

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Digital silk road: How social media is outsmarting Trump’s tariffs