China has won another battle
The global landscape has been dramatically altered by US President Trump's tariff policies, which have undoubtedly sparked significant controversy and attention. However, Trump recently made a surprising turn, stating that he would soon reduce tariffs on China to ease tensions between the two countries. A senior White House official indicated that tariffs on China could potentially be lowered to around 50 percent to 65 percent.
This time, China has won another battle! In the face of both internal and external challenges, how could Trump not bow down?
China has maintained a tough stance throughout this tariff war, adopting a "we'll fight till the end" attitude in its resistance! If the US raises tariffs, we will follow suit! When Trump raised tariffs to 125 percent, China announced it would no longer engage in this pointless "who can raise more" game and instead responded coolly to the US. It promptly announced a new policy of visa-free travel for 240 hours and immediate tax refunds upon departure, encouraging Americans to come and shop! Chinese manufacturers also heavily promoted their products on platforms like Douyin and Xiaohongshu to attract travelers. I believe Trump never anticipated that he would indirectly promote China's B to C e-commerce channels and boost the tourism economy.
The economic situation in the US is precarious, with the stock market entering a bear market, inflation rising, unemployment rates soaring, and social unrest brewing. In this context, Trump's tariff policies seem to burden American citizens further. Creating external enemies and consuming internal resources. Former allies of many countries now seek to break free from American intimidation and dependency. Farmers who strongly supported him during the election now harbor resentment due to their inability to export soybeans and other agricultural products.
Additionally, Trump faces internal pressure. With protests erupting across the country, five million people have taken to the streets demanding his resignation; even the mayor of California has chosen to sue him through legal channels. His Republican allies are also not supportive of his policies, reflecting widespread public dissatisfaction with the government. Under such circumstances, Trump's tariff policies will undoubtedly face greater scrutiny and opposition.
History also tells us that trade wars often result in losses for both sides. In this trade war, China seems to have found its foothold and is increasingly occupying a dominant position in the global economy. With China's rise, it will no longer be led around by others as it once was.
In this US-China trade war, China has undoubtedly won this round to some extent. Whether Trump's tariff policies can endure remains to be seen, as the US must confront its own economic recession, a bear market, and the potential depreciation of the dollar due to interest rate cuts. Let's wait and see.
The author is a Hong Kong-based commentator. The views don't necessarily reflect those of China Daily.
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