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US Tariffs May Lead to Chinese Cyberattacks in Retaliation, Experts Warn

 

As the trade battle between the United States and China heats up, some cybersecurity and policy experts fear Beijing could retaliate in cyberspace. Shortly after the US raised its tax on imported Chinese goods to 104 percent on Wednesday last week, China raised its duty on American imports to 84 percent.

"China urges the US to immediately correct its wrong practices, cancel all unilateral tariff measures against China, and properly resolve differences with China through equal dialogue on the basis of mutual respect," the Office of the Tariff Commission of the State Council noted in a statement. 

Citing a "lack of respect" from Beijing, US President Trump raised the China tariff yet again, this time by 125 percent. The government later "paused" punitive tariffs on numerous other countries, but maintained the 125 percent tax on China. White House press secretary Karoline Leavitt told reporters, "President Trump will strike back harder when you strike at the United States of America.” 

There is growing concern that President Xi Jinping may use his army of cyber-spies to support the People's Republic, even though this back and forth has the potential to ruin trade between the two countries, drive up consumer costs, or cut off supply completely. 

"China will retaliate with systemic cyber attacks as tensions simmer over," cybersecurity advisor Tom Kellermann stated. "The typhoon campaigns have given them a robust foothold within critical infrastructure that will be used to launch destructive attacks. Trade wars were a historical instrument of soft power. Cyber is and will be the modern instrument of choice.” 

The "typhoon campaigns" refer to a sequence of digital incursions supported by the Chinese government that were revealed last year. Among them are Volt Typhoon, which has been infiltrating America's vital infrastructure since at least 2023 and plotting destructive cyberattacks against those targets, and Salt Typhoon, an espionage team that gained access to at least nine US government and telecom networks. 

"To the extent that China is holding back on conducting certain types of cyberattacks, it may feel less restrained now," noted Annie Fixler, director of the Center on Cyber and Technology Innovation at the Foundation for Defense of Democracies.

"The intelligence community has assessed that China has conducted operational preparation of the battlefield to disrupt US critical infrastructure and cause societal panic, impede US government decision making, and degrade our ability to mobilize forces," Fixler added. 

In addition to spying, which is always going on, it is unclear what, if anything, Beijing-backed goons intend to do online to protest Trump's tariffs. However, financially motivated cybercriminals have already discovered ways to take advantage of people's misunderstanding of the constantly changing trade regulations.