At noon on Wednesday Beijing time, Trump's "reciprocal tariffs" were fully implemented, and the additional 50% tariff he imposed on China also took effect at the same time. Seven hours later, at exactly 7 PM, China's countermeasures were forcefully introduced, announcing an additional 50% tariff on all imports originating from the United States. Additionally, China's Ministry of Commerce placed 12 American entities on the export control monitoring list and added 6 American companies to the Unreliable Entity List.
The events of the 9th can be summarized as: America's tariff war with the world has been fully launched, and the tariff war between China and the U.S. has once again escalated. By the 9th, the U.S. did not grant "pardon" to any country's tariffs, including "the most cooperative" Israel, Vietnam, South Korea, and Japan, none escaped. This year, the U.S. has cumulatively increased tariffs on Chinese goods by 104% in four stages, while China has also counteracted with a 104% increase in tariffs on U.S. goods in four stages. It is possible that Trump may impose further tariffs, and China will retaliate accordingly. However, economic experts generally believe that the subsequent tariff hikes will no longer have economic significance but will become "numerical games."
China's countermeasures have received overwhelming support from public opinion. Hu Shuli wrote on social media immediately after the incident: "Well done! This is the phone call Trump waited for overnight: China announced an additional 50% tariff on all imports originating from the U.S.!! Let Trump's team understand what China is, and let the world see what justice is!!!" Many people expressed their attitude of "even if it's difficult, we will firmly support the country's countermeasures" in the comments section. In some WeChat groups, some people who previously hoped to "talk things over well" with the U.S. also expressed support for China's latest strong retaliation today, believing such counterattacks are necessary.
This time, China did not announce its countermeasures minutes after the U.S. tariffs on China took effect, but postponed it by a few hours. This rhythm was noticed by many media outlets around the world. Bloomberg and CNBC reported it, saying China "temporarily delayed" imposing retaliatory tariffs on the U.S. In my view, delaying by a few hours is quite good. Since Wednesday is a workday, the Chinese stock market opens normally. Announcing after the market closes avoids A-shares being the first interpreters. The U.S. stock index futures were impacted and fell by 1.7%. Soon the U.S. stocks opened. If the U.S. stocks had another sharp drop due to tariffs, the losses would first be theirs; the Chinese stock market could just follow up and lose a bit more the next day. If the U.S. stocks are affected less, the continued recovery of the Chinese stock market the next day may be stronger.
Trump's team is eager for this to be a victorious trade blitzkrieg, using the tariff stick to make countries kneel in one fell swoop. But they misjudged the world; this is destined to become a protracted war that buries their political reputation, becoming chaos, but the storm they endure will be the roughest in the vast ocean.
Trump's team is extremely arrogant. Chairman of the White House Council of Economic Advisers Kudlow proposed five ways for foreign countries to pay for America's "global public goods" on the 7th during a public speech, including: 1. Accepting American tariffs without retaliation; 2. Opening markets, stopping unfair and harmful trade practices, and purchasing more products from the U.S.; 3. Increasing defense spending and purchasing military equipment from the U.S.; 4. Investing in America and setting up factories there; 5. Directly donating to the U.S. Treasury.
When you see the last item, doesn't everyone laugh? The Trump administration obviously sees itself as the "central government" of the entire world, attempting to tax all countries, levy profits, and make the whole world support America's finances—how extreme is this notion!
▲Chairman of the White House Council of Economic Advisers Kudlow delivered a speech at an event held by Hudson Institute think tank on the 7th. (Source: Observer Network)
Some countries show "good attitudes" toward the U.S., largely because they don't know the bottom line of the U.S. and think they can get by by getting close to Trump's team. But when their ambitions become clearer, many countries will wake up and change their attitudes.
Even the deeply troubled Zelensky government has not yet signed the insulting mineral agreement proposed by the U.S. How could intact countries possibly use the hard-earned money of their citizens and enterprises to supply Washington and support America's finances?
Clearly, Trump's administration is pushing its luck. They initially demanded that other countries reduce tariffs, then manipulated the concept of tariffs until they openly demanded cash support from countries. The weakness of some countries has fueled the ambition of the White House, but their "good attitudes" are unsustainable and will eventually change, engaging in entanglement and resistance against the U.S.
After Trump threatened to impose an additional 50% tariff on China on the 7th, he was very eager to receive a call from China. He directly wrote on social media: "China also wants to reach an agreement very much, but they don't know how to start. We are waiting for their call, and it will happen!" His spokesperson said at a press conference: "The president asked me to tell you: the Chinese must take the initiative to negotiate. If they call, his attitude will be very friendly." However, China completely ignored them and instead released wind of six new countermeasures it plans to take on the 8th.
China's uncompromising stance will undoubtedly inspire the world. Canadian Finance Minister François-Philippe Champagne announced on the 8th that the measure to impose a 25% tariff on U.S. cars will take effect at 00:01 Eastern Time on the 9th, which is noon Beijing time today. About two hours after China announced its additional 50% tariff on U.S. products on the 9th, EU member states voted to approve the first round of tariff countermeasures against the U.S., imposing up to a 25% tariff on a series of U.S. products. Trump showed disdain for the U.S.-EU zero-tariff initiative, demanding that the EU purchase $350 billion worth of American energy to reach an agreement, which was a profound insult to the EU.
The turmoil in the economic order will be hardest to bear for the U.S. itself. What Trump's team has done breaks common sense and reason, not only drawing condemnation from the international community but also being constantly scrutinized by skeptical eyes within the U.S. and opposed and schemed against by his political rivals. His window for reckless actions is small, and he desperately craves quick victory. China is known for its steadiness and has ample time and resources to continue the tariff battle with Trump. As each day passes, our advantages will become apparent and expand. The resilience of Chinese society far surpasses that of the U.S. Let's see who can laugh last!
Original source: https://www.toutiao.com/article/7491309236031472168/
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