The White House posted the details of the 104% tariff on China:
Exemptions will be granted for Chinese goods such as rare earth minerals, pharmaceuticals, gold, semiconductors, etc., with tariffs remaining at 20%;
All other goods will be subject to a 104% tariff.
Previously, when China indicated an equal reciprocal tariff of 34%, Trump stated that all products from China would face a 50% tariff, bringing the total tariff level to 104%.
One day later, there was some relaxation, with certain products still maintaining a 20% tariff rate.
Looking at the U.S. exemption list, rare earth minerals are a bottleneck for the U.S., with high dependence on imports, while China holds about 70% of the international market share and controls approximately 90% of refining capacity. Over 80% of the U.S.'s rare earth compounds are imported from China. The military industry and electric vehicles both have significant demand for rare earths; if supplies were cut off, it would pose major risks to relevant U.S. industries.
Pharmaceuticals are also on the exemption list. The U.S. relies heavily on China for pharmaceutical raw materials. High tariffs would inevitably increase drug costs, raise prices, and increase public healthcare expenses, leading to opposition. This means Trump could lose support and votes, so he dares not take risks.
In fact, it has been proven that in response to the U.S. tariff blackmail, China has cards to play, and the U.S. cannot act recklessly or肆意. It must rein itself in.
Therefore, if the U.S. insists on waging a trade war against China, then we will see it through to the end!
Original source: https://www.toutiao.com/article/1828915789191180/
Disclaimer: The article represents the views of the author alone.