[Source/Observation Network by Shao Yun]

Local time on April 18, CBS reported citing sources that the high tariffs expected to be imposed on Chinese goods would lead to supply chain tensions. The internal Trump administration in the United States has begun discussing the formation of a task force to handle related issues urgently in case no breakthrough is achieved in negotiations with the Chinese government.

According to the sources, no final details have been decided regarding the specific situation of this group, but it may include Vice President Vance, Treasury Secretary Besant, Commerce Secretary Rutnik, Kevin Hassett (Director of the White House National Economic Council), Stephen Milan (Chairman of the White House Council of Economic Advisers), and Trade Representative Greer.

The report also quoted an American official saying that in order to cope with possible supply chain problems caused by tariffs, the Trump administration has been working for some time. Recently, Trump raised tariffs on Chinese goods to 145%, with some Chinese products facing a maximum rate of 245%. China has already implemented countermeasures. CBS pointed out that this has put pressure on pharmaceuticals, semiconductors, electronic devices, and critical minerals. Additionally, this move has sparked market concerns about inflation and economic slowdown in the United States.

Local time on April 10, 2025, Washington, D.C., U.S., at the White House Cabinet Room, U.S. President Trump delivers a speech at the cabinet meeting. Visual China.

Previously, Trump told reporters at the White House Oval Office on the 17th that he did not want to continue increasing tariffs on China because it might cause trade between the two countries to stall. He said, "I may not want to increase tariffs further, or even reach the current level. I might want to reduce tariffs because, you know, you want people to buy goods."

When asked about the progress of negotiations with China, Trump said on the 17th that he believed there would be "ample" time to reach an agreement and expected positive results. "I think the entire negotiation could be completed in the next three to four weeks." For the situation if no agreement is reached, Trump confidently declared, "Things will work out fine anyway."

American cable news network CNN reported last week citing senior White House officials that Trump had requested his team not to initiate contact with China first and insisted that China should make the first move. This has raised concerns in business circles. CNBC reported on the 16th that a senior executive of an American company called the White House last week to inquire about the progress of Sino-American dialogue. The White House replied that "China has not called." The executive said, "From the beginning, it was clear that this administration overestimated the leverage tariffs gave them over China."

87% of the supply chains for more than 1,000 U.S. weapon systems using gallium, germanium, antimony depend on Chinese suppliers. Chart by U.S. Govini.

The Financial Times analyzed on the 15th that in this tit-for-tat confrontation, China holds several trump cards - increasingly diversified export markets, large U.S. Treasury bonds, control over key strategic minerals, and advantages in the national system during crisis response. These chips not only enable China to withstand the test but also highlight its strength in negotiations.

Bloomberg also believed on the 14th that trade wars have no winners, but in this trade war initiated by Trump, a fact is becoming increasingly clear - China's chips may be more powerful than expected, especially when people start paying attention to its countermeasures. In fact, in Sino-U.S. economic and trade relations, the United States is deeply dependent on Chinese goods, and restrictions on imports are actually self-harming.

"Ultimately, only when a country has suffered enough self-inflicted harm can it consider softening its stance and truly return to the negotiating table," said William Xu, Senior Economist of Natixis Greater China.

In Bloomberg's view, so far, China's reaction has not only been a countermeasure at the tariff level but also a principled and well-reasoned defense of its own position on issues concerning negotiations. Julian Evans-Pritchard, Chief China Economist at Capital Economics, said, "Judging from market reactions, I believe the U.S. feels stronger pain... The U.S. is under greater pressure to sit at the negotiating table."

On April 16, Foreign Ministry Spokesperson Lin Jian presided over a regular press conference. NHK reporter asked about the issue of U.S. tariffs. White House Press Secretary cited Trump as saying, "The ball is in China's court" and "China needs to reach an agreement with the U.S., while the U.S. does not need to reach an agreement with China." What is China's response?

Regarding this, Lin Jian stated that this tariff war was initiated by the U.S. side, and China's necessary countermeasures were taken to protect its legitimate rights and interests and uphold international fairness and justice, which is entirely reasonable and legal.

Lin Jian emphasized that China's position has always been clear: there are no winners in a tariff war or a trade war. China does not want to fight, but it is not afraid to fight. If the U.S. side really wants to solve problems through dialogue and negotiation, it should stop its extreme pressure tactics, stop threats and blackmail, and engage in dialogue with China on an equal, respectful, and mutually beneficial basis.

This article is an exclusive contribution from Observation Network and cannot be reprinted without permission.

Original article: https://www.toutiao.com/article/7494967353609634304/

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