Trump’s China tariffs have triggered a wave of unrest across the country, as factory closures and mass layoffs fuel widespread protests and economic instability.
A Nation on Edge: Workers Demand Back Pay Amid Factory Shutdowns
In late April 2025, Chinese factory workers began mobilizing in cities like Suining, Hunan, and Inner Mongolia, demanding unpaid wages and protesting abrupt job losses. These demonstrations erupted after President Donald Trump imposed a sweeping 145% tariff on Chinese imports, leading to a cascade of factory closures across the country. At Guangxin Sports Goods in Hunan Province, hundreds of workers went on strike after the company shut down without paying wages or social security benefits. In Inner Mongolia, construction workers threatened to jump off a building if their overdue wages were not paid.
According to Radio Free Asia, these protests are spreading nationwide, with workers demanding back pay from companies impacted by the steep U.S. tariffs and an economic slowdown in China.
Economic Fallout: Manufacturing Sector in Decline
China’s manufacturing sector is reeling from the impact of Trump’s tariffs. The country’s manufacturing purchasing managers’ index indicates that new export orders have plummeted to their lowest levels since the COVID-19 pandemic, and manufacturing jobs are at their lowest since February 2024. Goldman Sachs estimates that around 16 million jobs in various Chinese industries are at risk due to the tariffs.
The Chinese government has acknowledged the severity of the situation, with the National Bureau of Statistics citing “sharp changes in the external environment” as a cause for concern.
Government Response: Stimulus Measures and Trade Talks
In response to the economic strain, China has introduced a range of monetary stimulus measures, including interest rate cuts, reduced bank reserve requirements, and increased funding for sectors like factory upgrades and innovation. Despite these efforts, economists warn that easing monetary policy may not sufficiently boost demand, and broader fiscal intervention might be necessary.
Simultaneously, China has agreed to hold trade talks with the U.S. in Geneva, aiming to de-escalate the ongoing trade war. Chinese Vice Premier He Lifeng is set to meet U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer from May 9 to 12. While both nations dispute who initiated the talks, the meetings represent a coordinated effort to address escalating tensions.
Political Implications: Leadership Under Pressure
President Xi Jinping’s administration faces mounting pressure as the economic fallout from Trump’s China tariffs continues to impact the nation’s workforce. Xi has urged citizens to “eat bitterness,” a call for perseverance amid hardship caused by his economic policies. However, public confidence is eroding, evident in phenomena like “lying flat” and falling birth and marriage rates.
In the U.S., Trump’s aggressive tariff strategy has drawn criticism for its potential to inflate consumer prices and disrupt supply chains. Small businesses that rely on Chinese imports are particularly vulnerable, facing increased operating costs and potential closures.
Conclusion: Uncertain Path Forward
As China grapples with the economic and social repercussions of Trump’s China tariffs, the upcoming trade talks in Geneva offer a glimmer of hope for de-escalation. However, the path to resolution remains uncertain, with both nations needing to navigate complex economic and political landscapes.
