US tariff reductions provide some relief, but challenges remain for China's job market

From Yahoo Finance: 2025-05-15 22:57:00

Chinese worker Liu Shengzun lost two jobs in a month due to U.S. import tariffs. Despite recent tariff reductions, Liu has given up on factory jobs and returned to farming. The U.S.-China trade war de-escalation has prevented mass layoffs, but challenging tariffs of 30% remain. Economists estimate potential job losses and economic growth slowdowns as a result.

China faces potential job losses and economic growth slowdowns due to U.S. tariffs. The recent tariff reductions have led to some relief, but challenges remain. Economists estimate job losses ranging from 1.5-6.9 million to 4-6 million with current tariff levels. Further reductions in tariffs could still lead to 1.5-2.5 million job losses.

China is working to mitigate manufacturing job losses through increased state investment in labor-absorbing projects and stimulus measures. The People’s Bank of China unveiled new measures to provide cheap funds for services and elderly care. Government advisers believe increased government investment will be crucial for job creation amidst the economic challenges.

The impact of last month’s tariff spike on the job market remains uncertain, with concerns about potential job losses. Exporters have been reducing their workforce to stay competitive. The unpredictability of U.S. President Trump’s tariff policies is a major obstacle to job creation, as seen in cases like Li Qiang, who lost his job due to U.S. orders and competition in Japan.



Read more at Yahoo Finance: Analysis-Tariff cuts ease mass China layoffs threat, but job market pain persists