2025 is destined to be a year of turmoil, and the beginning of this situation can be traced back to the presidency of Donald Trump, whose second term is even more radical than his first.

The trade war has been the main rhythm of Trump's administration, and this time it is even more intense, with the U.S. imposing tariffs on the vast majority of countries around the world.

The U.S. has continuously increased tariffs on Chinese goods, which have now reached as high as 145%, almost equivalent to a trade embargo, bringing nearly a standstill in economic exchanges between the two countries.

In response, China has also imposed a 125% tariff on American goods and has stated that it will not compromise or succumb to any coercion.

President Trump of the United States has been waiting for a phone call from China for negotiations, but so far he hasn't received one. His goal has not been achieved, and the U.S. has even threatened to raise tariffs on Chinese goods to 245%. However, beyond 100% tariffs, there will basically be no further purchases of American goods.

Due to China's strong countermeasures, the EU is choosing to observe, while other major economies are either planning to negotiate with the U.S. or intend to retaliate. In the short term, the trade war cannot be concluded.

However, the U.S. market has responded promptly. The U.S. stock market has experienced continuous significant declines over several days, wiping out trillions of dollars in value. The interest rate in the U.S. Treasury market has suddenly risen, reflecting insufficient buyer confidence. In the foreign exchange market, the dollar has seen its largest decline against the euro and pound in recent years, indicating a devaluation trend. Federal Reserve Chairman Powell has issued a rare warning to Trump, believing that the trade war is wrong.

Facing various pressures and the counterproductive effects of the trade war, President Trump of the United States has had to adopt a new stance, stating that he will not increase tariffs further and hopes to reach an agreement with China.

According to a report by Russia's Sputnik News on April 18, President Trump said he does not want to further increase tariffs on Chinese goods.

Donald Trump

Trump spoke to reporters at the White House about the prospects of the U.S. response under further countermeasures from China:

"I don’t want it to go up anymore. Consumers will stop buying these products if it goes up further. Maybe I won’t increase tariffs anymore, maybe even below their current level or lower. Because I want people to continue purchasing."

According to Trump, negotiations regarding tariffs with China are already underway.

Although there are no winners in a trade war, facing the aggressive actions of the U.S., China has no choice but to retaliate to safeguard its own interests, and we also have the confidence to do so.

China is the world's largest trading nation and the largest trading partner of over 150 countries and regions globally, with a vast market for Chinese goods. Although the U.S. is the world's largest consumer market, it is not irreplaceable. China can offset the gap left by the U.S. market through increasing domestic demand and expanding other markets.

The problem now facing the U.S. is that manufacturing has severely hollowed out; a large amount of American goods need to be imported. If they don't buy from China, they will have to purchase from other countries, but the prices of goods from other countries are higher, and the quality is inferior. This would lead to rising inflation in the U.S., placing a heavier burden on American citizens.

The Chinese people have developed through their hard work and wisdom, not through anyone's charity. "We, the Chinese nation, have the determination to fight our enemies to the end, the resolve to restore old glory based on self-reliance, and the capability to stand among the nations of the world."

Original source: https://www.toutiao.com/article/7494489082588873251/

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