According to a report in the US Wall Street Journal on the 10th, although the United States buys more goods from abroad than it sells, the US trade surplus in the service trade sector reached nearly a record high last year. American service exports that Trump did not take into account when calculating tariffs are now being caught up in the trade war he initiated. On September 9th, Trump announced a temporary suspension of the so-called "reciprocal tariffs", and within the next 90 days, only the same 10% "benchmark tariff" will be levied. However, the tariff on China has been increased to 125%. The report stated that despite Trump's changes, the impact brought by the tariffs still made various countries uneasy, causing market volatility. The report believed that although countries cannot easily impose tariffs on services, they can tax, fine, or even ban American companies. As a response to Trump's comprehensive tariff threat, the EU has already begun targeting large American technology companies. Trump also angered foreign consumers, putting American service exports at risk. Many foreign consumers may choose to avoid American banks, asset management companies, and other businesses. Economic slowdowns suppressing demand do not help either. For decades, countries have exported cars, telephones, clothes, and food to the United States, while the US provided bonds, software, and management consultants to these countries. Data shows that in 2024, the US imported $3.3 trillion worth of goods and exported $2.1 trillion worth of goods, with a cumulative annual goods trade deficit of $1.21 trillion. 2024 became the year with the largest trade deficit in nearly 250 years since the founding of the United States. At the same time, America's service trade surplus rose from $77 billion in 2000 to $295 billion last year. This is in stark contrast to the mid-20th century when the US was a manufacturing powerhouse with a goods export surplus but a service trade deficit. As the US developed, the service industry gradually became the dominant force in the US economy. Software and financial products became major US exports. For some of the largest service companies, overseas markets are now more important than the US market.

Small business owners across the United States are calculating how to bear the higher costs brought by import tariffs. NPR Brad Setser, an economist at the Council on Foreign Relations, said that corporate tax avoidance strategies also drove the growth of service exports. Many American companies register in other countries with lower taxes and charge fees to their American parent companies. These fees are counted as intellectual property or asset management fees, which are considered service exports. This is why there are significant service trade surpluses between the US and Ireland, Switzerland, and the Cayman Islands. In some cases, although the US imports far more goods from these places than it exports, it sells more services. Taking the EU as an example, if we combine the statistics of goods and service trade, the trade volume between the US and the EU is basically balanced. The head of China's Ministry of Commerce responded to reporters' questions about the White Paper "Certain Issues on Sino-US Economic and Trade Relations" on September 9th, stating that the US is China's largest service trade deficit source, with the overall deficit showing an expanding trend. In 2023, the deficit was $26.57 billion, accounting for approximately 9.5% of the US service trade surplus total. Considering three factors: goods trade, service trade, and local sales of enterprises in each other's countries, the economic benefits gained from Sino-US economic and trade exchanges are roughly balanced. Now, EU politicians hint that they may impose tariffs on American tech companies as retaliation against the US. European Commission President von der Leyen said earlier this month that Europe had many cards to play, from trade to technology to market size. "This power is built on our readiness to take firm countermeasures. All options are on the table." The EU suspended its retaliatory measures against US tariffs originally scheduled for April 15th for 90 days. But von der Leyen said the EU wanted to give negotiations a chance. If the negotiations were unsatisfactory, countermeasures would be taken. "Preparations for further countermeasures are still ongoing." The report stated that countries and their consumers can criticize American services in various ways. Foreign tourists booking American hotel rooms and flights are considered American exports, but Trump's actions have aroused increasingly strong anti-American sentiment, deterring potential tourists. Another blow is that the Chinese Ministry of Culture and Tourism issued a risk warning to Chinese tourists traveling to the US on the 9th, reminding Chinese tourists to fully assess the risks of traveling to the US and proceed with caution. It was reported that recently, Canadian, German, and French citizens were detained at airports for "unexplained reasons" for weeks. The US has frequently appeared in safety warnings, including from Germany, the UK, Finland, Denmark, and other so-called American allies. Moreover, foreign consumers have begun boycotting American brands. David Weinstein, an economics professor at Columbia University, said that the trade tensions with China during Trump's first term ultimately damaged American service companies operating in China. "When you make enemies everywhere, you sell fewer things." On Facebook, an anti-American goods group in Sweden has over 80,000 members who discuss how to buy non-American laptops, dog food, and toothpaste. In a similar French group, members enthusiastically praised European laundry detergent and smartphone apps and debated whether cognac or Scotch whiskey is a better alternative to bourbon. Such protest actions even prompted some businesses to change. Danish and Canadian supermarket chains began using special symbols to mark domestic products, making it easier for customers to identify local products while shopping. With the rise of the "Buy Canadian" movement, more and more American companies said that Canadian retailers refused to sell their products, and some retailers even canceled their orders. Swiss chocolate manufacturer Lindt & Sprüngli said this month that they would start selling European-made rather than American-made chocolates in Canada to avoid tariffs and resist consumer boycott risks. The boycott movement also spread to the digital world. European consumers said they had canceled subscriptions to American streaming services such as Netflix, Disney+, and Amazon Prime Video. This article is an exclusive contribution from Guancha Observer, unauthorized reproduction is prohibited. Original Source: https://www.toutiao.com/article/7491721877539389992/ Disclaimer: The views expressed in this article are solely those of the author. Please express your opinions by voting 'thumbs up' or 'thumbs down' below.