The trade war, China has basically won! It's unexpected that the substantial results achieved this time are so huge! According to the statement released by the Ministry of Commerce on May 12, after calculation, the reciprocal tariff imposed by the US on us is approximately only around 10%. Our counter-retaliation tariff against the US is 125%. After contact between China and the US, the US made concessions, and we handled the reciprocal tariffs in two parts.

Since the US canceled a total of 91% of the additional tariffs, China also correspondingly canceled 91% of the counter-retaliation tariffs. Therefore, the reciprocal tariff imposed by the US on us has been reduced to only about 34%. As for the handling of the remaining 34%, 24% was suspended for 90 days, and the remaining 10% of the tariff was retained. In other words, since April 2nd, the new tariffs imposed by the US have been reduced to only 10%.

Clearly, the US attempt to extort and coerce us has completely fallen through. Of course, it is believed that future negotiations between China and the US will continue. However, we must point out that now the US has returned to a relatively pragmatic attitude, and there is still room for negotiation between China and the US. The negotiable part includes two aspects. First, from our perspective, the 24% of suspended tariffs must be completely canceled.

Secondly, before April 2nd, the US imposed two 10% additional tariffs under the pretext of fentanyl. This time, during the contact between China and the US, it was clearly not reached an agreement on this issue. Therefore, when combined with the reciprocal tariff of 10%, the actual new tariff imposed by the US on us since Trump took office is actually 30%. To be honest, a 30% actual tariff is still too high. It can be said that we have basically achieved victory in the trade war, but in the future, we still need to continue negotiating through talks to achieve a final result that is in line with our interests.

Original article: https://www.toutiao.com/article/1831901750999051/

Disclaimer: The article solely represents the author's personal views.