Some analysts believe the levies will force China to restructure its economy and rely heavily on domestic consumption, which it has been struggling to boost.
Otherwise, the tariffs will not be sustainable for China in the longer term, Tim Waterer from brokerage KCM Trade said.
“The tariffs are aimed at suppressing China,” said the manager of a Chinese freight company.
Wu Changchun added that many of the South East Asian countries that have been hit with steep tariffs are “exactly where many Chinese businesses have relocated”, such as Vietnam and Cambodia.
The Tianjin-based company plans to negotiate with some of its American clients to share the burden of the tariffs. “Every case is different, but overall, the impact has been quite substantial,” he said.
Mr Wu, whose company operates mainly on shipping routes between China and Cambodia, said he is already seeing a fall in freight volume.
Several construction projects in Cambodia have also come to a halt after Trump’s tariffs announcement, he said.
“If the tariffs were at 10% or 20%, businesses might still be able to absorb the cost by optimising supply chains, cutting margins and sharing the burden. Trade could still go on… [But at 104%] that’s no longer something trade-offs can fix,” said Mr Wu, a general manager at Maritima Maruba.
“That’s full-on decoupling. Trade would basically come to a standstill.”
Additional reporting by Annabelle Liang
