Trump rashly launched an unprecedented trade war against more than 180 countries and regions worldwide. How far can this radical tariff war go? What impact will it have on the global trading system? As a staunch maintainer of the world economic order, how can China turn pressure into opportunity while safeguarding national interests? On April 10th, Observer Network invited authoritative experts to provide authoritative interpretations from the perspectives of the U.S. economy, the world trading system, and geopolitics.

In the exchange, Professor Huang Jing from Shanghai International Studies University posed a question: "What is Trump's logic for deciding to launch a tariff war? What is his goal?" Although Trump often appears crazy, he must have a purpose, and there must be reasons behind his actions," said Huang Jing.

Regarding this issue, Yangsheng Liu, founder of Hao Ran Capital and senior researcher at Taihe Institute, believed that the fundamental reason for Trump to launch this round of tariff war is that "the U.S. government can no longer bear it."

Liu explained, "The U.S. government can no longer bear its financial burden with debts amounting to $37 trillion and continuously increasing; it also cannot bear the budget deficit, which is over $1 trillion annually; and it also cannot bear the trade deficit. Therefore, regardless of whether he uses tariffs or any other means, his goal is to raise money, to make money by any method available. So we don't need to consider whether what he does makes sense or conforms to economic rules and principles."

"It's about bullying to get money," Liu pointed out. "Because the U.S. has printed too much money since 2008, and it has reached a point where repayment is impossible. So now they are looking for ways to get money. I think this is Trump's goal."

From left to right: Professor Huang Jing from Shanghai International Studies University, Ding Yifan, researcher at the World Development Research Institute of Development Research Center, Yangsheng Liu, founder of Hao Ran Capital, and senior researcher at Taihe Institute.

This view was also echoed by Ding Yifan, researcher at the World Development Research Institute of Development Research Center. Ding Yifan believed that the purpose of Trump launching the new round of tariff war is "to increase fiscal revenue." Ding Yifan explained that Trump's administration is currently facing a series of unsolvable problems, "the biggest problem being that the U.S. fiscal debt expenditure is too large, but fiscal revenue is too small."

Ding Yifan pointed out, "Trump has a very simple understanding: you all have a trade surplus with me, you're taking advantage of me. Why are you taking advantage of me? Because you value my market. Well, sorry, now I won't let you enter my market so easily, so I start raising tariffs."

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Original source: https://www.toutiao.com/article/7491638701756367395/

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