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American Focus > Blog > Economy > Analysis-Tariff cuts ease mass China layoffs threat, but job market pain persists
Economy

Analysis-Tariff cuts ease mass China layoffs threat, but job market pain persists

Last updated: May 16, 2025 11:35 pm
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Analysis-Tariff cuts ease mass China layoffs threat, but job market pain persists
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The recent trade tensions between the United States and China have had a significant impact on the job market in China, particularly in industries heavily reliant on exports. Chinese worker Liu Shengzun is one of many who have felt the effects of the escalating tariffs, losing two jobs in just one month as import duties soared to triple digits in April.

The sudden increase in tariffs led to a reduction in output at a Guangdong lighting products factory and a footwear maker, ultimately resulting in job losses for workers like Liu. With the tariffs now decreasing, there is some relief for workers, but the economic damage caused by the trade war remains.

While the recent talks in Geneva have helped to prevent mass layoffs and maintain social stability in China, the lingering tariffs are still high enough to hinder economic growth and continue to impact the job market. Economists and policy advisers warn that the current tariff levels, even after the reduction, will pose challenges for Chinese businesses and could lead to further job losses.

Despite efforts by the Chinese government to mitigate manufacturing job losses through increased state investment in public projects and stimulus measures, the job market remains unstable. The People’s Bank of China has introduced new measures to provide financial support for services and elderly care, but the overall impact of the tariffs on employment is still uncertain.

Analysts believe that the unpredictability of U.S. President Donald Trump’s tariff policies is a major obstacle to job creation in China, as exporters remain cautious about the future. Workers like Li Qiang, who lost his job at an export company and now works as a ride-hailing driver, are hesitant to return to the export sector due to the uncertain nature of Trump’s trade policies.

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Overall, the trade tensions between the U.S. and China have had a lasting impact on the job market in China, with millions of jobs at risk and economic growth expected to slow. The Chinese government is working to support employment through increased investment and stimulus measures, but the effects of the trade war continue to be felt by workers like Liu and Li.

TAGGED:AnalysisTariffChinacutsEasejobLayoffsmarketmasspainpersistsThreat
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