Given the current state of trade tensions, the executive orders imposed by the United States of America’s (USA) new administration are a wake-up call for the global community because they serve as a clear reminder that maintaining economic stability and growth in today’s interconnected world requires cooperation and respect for one another in trade policies.

The United States’ 20% tariff on Chinese imports, which was imposed under the pretext of the fentanyl problem, will lead to supply chain instability and disrupt international trade. The trade war, which challenged international economic standards and put pressure on ties with China, represented a significant shift in U.S. foreign policy.  

If the US importing company increased the retail price of the product for the person buying it in the US, we also need to understand that the US consumer would have to pay the higher price. Because of these tariffs, the economies of every country in the world, not just China, will suffer. 

Furthermore, it is essential to recognise that the United States is particularly concerned about the increasing number of developing countries seeking alternatives to the dollar. Emerging nations are discouraged from joining the BRICS (Brazil, Russia, India, China and South Africa) to de-dollarise and replace the global financial and monetary system. The US government has threatened to impose 100% tariffs if developing countries halt using the US dollar as their global currency. 

Therefore, this creates challenges for countries attempting to maintain stable trade relations in the face of this trade war, and complicates future international relations. The interdependence of modern economies emphasises the need for cooperative strategies to promote stability and advancement in a trading environment that is becoming more and more polarised, as governments throughout the world deal with the consequences of these tensions.

Global economic growth, shared prosperity

Speaking at a press conference on 4 March 2025, a spokesman for the Chinese foreign ministry called the US’ decision to increase tariffs on Chinese imports as unjustified, and will do no one good. 

The spokesperson urged the US to respect the facts, consider its own interests, and make the right decision. Even so, imposing new high tariffs on China presents an opportunity for China to expand trade relations with other countries, as China is dedicated to promoting global remedy control governance, and collaborating with other countries to address the emerging challenges presented by the fentanyl problem. 

As Africans, we must remember that China can bridge the gaps in development, work to improve local economies, draw in foreign investment, expand the private sector’s growth and competitiveness, and strengthen international integration. 

It’s interesting to note that, despite widespread repression and unilateral sanctions from the US and other countries, the Chinese economy grew by 5% last year and stood out among the major economies of the world, according to Chinese foreign minister Wang Yi. It demonstrates the peculiarity of the Chinese economy, despite all obstacles. 

The American economy shrank from 2.9% to 2.8% in 2024 when compared to the Chinese economy. The US administration promised to reduce taxes and relax business regulations to increase GDP growth. 

The ongoing trade conflict over tariffs in China might indirectly affect global trade. However, China’s determined and significant reform initiatives will level the playing field, and make market access even easier. 

China’s relentless drive to open to the outside world is inextricably linked to its development. 

China’s economy will continue to expand and overcome challenges. The Chinese economy will persevere in defying doubt and offering stability to the world and to itself. 

As such, African leaders must change their approaches to economic diplomacy that build a strong partnership with China, and balance America’s transactional approaches with Africa’s expectations. 

Moreover, we must admit that this disruption affects local and small businesses, which form the backbone of emerging economies. Africa’s potential for exports may be constrained by these tariffs, notably in sectors like agriculture and mining. Many African countries rely on exporting their raw materials to developed markets, such as the United States. 

Tariffs may increase prices and lower African exports’ ability to compete globally. Retaliatory tariffs from trading partners are driving up import prices, which is putting pressure on consumers and businesses alike, and escalating worries about an overall economic slowdown. In addition to endangering the collective good, imposing tariffs on China and the rest of the world will incite a trade war with the United States and the international community. To lessen the effects of US tariffs, it will be crucial to diversify export markets, strengthen regional and international trade agreements within Africa, and draw in investment from China and the BRICS countries.

As countries protect their interests, we expect retaliation in response to the US tariffs. At a time when international cooperation is more crucial than ever, this move could disrupt global trade, harm significant trading partners and create uncertainty. 

The cost of production increased for many American manufacturers because of their dependence on imported materials. American farmers suffered because of China’s retaliatory tariffs, which reduced demand for American crops. 

US tariffs will be met with retaliation from the United States’ main trade partners. China, the world’s second-largest economy, has proven it can withstand external shocks, and will cooperate with the international community to find common ground and adopt win-win strategies. 

Additionally, it has a diversified trade portfolio with strong ties to Africa and other regions, making it less dependent on the US. China’s approach to economic policy remains both pragmatic and forward-thinking. Initiatives such as the Belt and Road Initiative (BRI) continue to improve trade relations with developing countries, creating new avenues for growth, and reducing reliance on Western markets. 

Interestingly, China places a high priority on maintaining a stable fiscal policy, which will prevent unnecessary economic disruption, even if external circumstances necessitate currency adjustments. 

The United States must realise that even though imposing tariffs might serve short-term policy interests, doing so will ultimately exacerbate economic and social problems.  A collaborative strategy that prioritises equitable competition and shared prosperity is far more
sustainable. 

In conclusion, imposing tariffs on Chinese imports is a dangerous step that could cause global economic instability, while ignoring the core problems that need to be addressed. 

China remains resilient and committed to international cooperation and collaboration. There is no winner in a trade war, as history shows. 

Therefore, the journey forward must prioritise collaboration, mutual benefits, and the realisation that collective prosperity is the only long-term foundation for stability in a globalised world.

*Josef Kefas Sheehama is an independent economic and business researcher.