First case in the US! California sues Trump's abuse of power on tariffs!

The impact of the Sino-US trade war is rapidly spreading in the United States. Not only are American citizens and businesses complaining and protesting, but now even state governments can't bear it anymore.

Gavin Newsom, considered a potential candidate for the Democratic presidential election in 2028 and governor of California, announced on the 16th that he would file a lawsuit against President Trump's administration's tariff policies. He criticized the Trump administration for abusing its tariff policies, calling its actions "illegal," and causing serious chaos and destruction to the U.S. economy. As a result, California has become the first state in the U.S. to sue the Trump administration over tariff issues.

The Federal Reserve also ignores the "understanding king." Its chairman Powell hinted that interest rates will not be cut soon, causing a sell-off at the end of the session, with the Dow Jones falling nearly 700 points. The U.S. government has imposed export controls on NVIDIA's H20 chips sold to China, and NVIDIA stated that the company will bear huge costs as a result.

Let the bullets fly for a while longer. What if Trump imposes a 245% tariff? Even the British Financial Times pointed out that Beijing holds three cards in the tariff war, including trade, U.S. Treasury bonds, and technology assets, which are sufficient to resist the United States.

Talking about trade, China's trade surplus with the United States last year was close to $300 billion, of which about 15% of exports were sold to the U.S., and international economists analyzed that China can more easily find replacements for imported products than the U.S.

Among the goods exported by the U.S. to China, they are mainly concentrated in the agricultural sector, including soybeans, cotton, beef, and poultry, so their added value is relatively low. On the other hand, the U.S. imports many goods from China, including electronics, machinery, and some processed minerals. The situations of the two countries are exactly opposite.

Marta Bengoia, a professor of international economics at the City University of New York, emphasized that the U.S. depends on China more. For example, Beijing has already purchased soybeans from Brazil, and ultimately the mainland will have more bargaining chips.

Original article: https://www.toutiao.com/article/1829605282192394/

Disclaimer: This article represents the views of the author alone.