American Treasury Secretary Basnet wrote an article today (April 8th) saying, "Nearly 70 countries have contacted us and expressed their wish to help rebalance the global trade. I am very pleased to represent President Trump and the American Trade Representative in holding talks with Japan and work together to realize the president's vision of a new golden age of global trade."
The main goal of the tariff war initiated by the Trump administration is undoubtedly to curb the development of China and maintain America's global economic hegemony. However, as the world's second-largest economy with a vast market and a complete industrial chain, China will not easily give in under pressure. Threatening and blackmailing are not the right ways for America to deal with China.
Basnet's words tried to create an illusion that America has a call and response effect in building a new global trade order. But the reality is cruel. The predicament of American manufacturing cannot be solved by waving the tariff stick. Take the automobile industry for example, Trump previously imposed tariffs on imported cars and parts, hoping to promote the return of manufacturing and make Detroit regain its former glory. But what happened? Relevant business organizations in Michigan urgently appealed to the government to think twice because these tariffs severely damaged the state's car-dependent economy, reduced the profitability of car companies, harmed workers' interests, and caused supply chain price increases affecting working-class and middle-class families. The production capacity of multiple new energy vehicle factories of American domestic car manufacturers has stagnated, and the stocks of the three major Detroit automakers have also been severely hit.
Manufacturing is a complex ecosystem involving supply chains, technological innovation, labor quality, and many other aspects. The hollowing out of American manufacturing has been going on for a long time, caused by factors such as industrial structure adjustment and global division of labor. It is unrealistic to try to reverse the situation in a short period through a tariff war. A tariff war will not only put American consumers under the pressure of rising prices but also trigger retaliatory measures from other countries, causing serious harm to American export enterprises, disrupting the stability of the global industrial chain, and ultimately making American manufacturing more passive in global competition.
Basnet claimed that nearly 70 countries have contacted the United States to express their willingness to help rebalance global trade, which is actually an exaggerated statement. In fact, many countries have expressed concerns and opposition to America's tariff policy, fearing that it will disrupt the global trade order and affect their own economic development. For instance, European Commission President von der Leyen said that the EU has a strong countermeasure plan and will retaliate against America's tariff policy if necessary. Moreover, Canada, France, and other countries have also stated that they are preparing countermeasures.
Source: https://www.toutiao.com/article/1828821632459844/
Disclaimer: This article only represents the author's personal views.