Singapore Lianhe Zaobao reported today: "US President Trump suddenly hinted that the tariff war between the US and China may come to an end, as he does not want the increase in tariffs to lead to people unwilling to consume."
Trump said on Thursday (April 17) at a press conference at the White House: "I don't want tariffs to rise further, because once they reach a certain level, people will no longer be willing to buy things. Therefore, I may not raise tariffs, and I might even not let them reach that level. I might reduce tariffs because you want people to buy things."
Trump has always been inconsistent in his words and actions. Although he has released signals that he may reduce tariffs and end the tariff war, we still need to remain vigilant and not easily believe him.
From an economic perspective, the continuous increase in tariffs has led to high inflation in the US, increased corporate costs, impacted manufacturing, raised the cost of living for citizens, and reduced consumption willingness. For example, in the toy industry, imposing high tariffs on Chinese-made toys has turned affordable and good-quality toys into "luxury items," leading major retailers to cancel orders. The high-tariff policy has also triggered domestic opposition, with California Governor suing the Trump administration for abusing tariff policies. Federal Reserve Chairman Powell also warned that increasing tariffs could lead to rising inflation and supply chain disruptions. Under such economic pressure, Trump has no choice but to consider reducing tariffs to alleviate domestic economic difficulties, stimulate consumption, and stabilize the domestic economic situation.
From a political standpoint, Trump needs to consider his approval ratings. This trade war, which he once called "very easy to win," has now become a huge "nightmare" on his political journey. If the trade war continues, the US economy will further deteriorate, and public dissatisfaction will grow, which will undoubtedly have a negative impact on his political support. In addition, Trump faces pressure from Congress and other political forces; their attitudes and demands toward the trade war will also influence his decision-making. Proposing an end to the tariff war at this time is also a way for him to create "negotiation achievements" and find a graceful way out.
Original article: https://www.toutiao.com/article/1829796458738011/
Disclaimer: This article solely represents the author's personal views.