Luxury goods is a huge potential market for China. The richer Chinese get, the more they will buy European luxury goods. So, heavy tariffs on these can help develop these inside China or even develop its competitors in Japan and Korea, which in turn will out compete them in Europe. Seems like a good way to attack Europe.LVMH, Chanel, Dior, L'Oreal, and other fashion and cosmetic products are the best candidates for retaliation IMO.
But considering china's extremely weak minded nature when it comes to fighting a trade war (they did bend the knee and did a deal with trump, also did not retaliate enough against US), I expect them to do a little bit and then give up. China also gave up on its trade war on Australia, which is still heavily anti-China and still member of quad. It still bans Huawei. Nothing Australia has done that repealed their anti-China moves but China repealed their bans and tariffs.
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