On September 25 local time, Trump announced that starting from October 1, a 100% tariff would be imposed on imported branded medicines or patented medicines, and tariffs of 25% and 50% respectively on imported heavy trucks and cabinets. This move triggered opposition from the U.S. Chamber of Commerce, which pointed out that it would increase the burden on consumers. That same evening, the Chinese Ministry of Commerce launched two investigations simultaneously: one was to initiate an anti-dumping investigation on imported pecans from the U.S. and Mexico, and the other was to conduct a trade and investment barrier investigation into relevant measures taken by Mexico against China. Previously, under pressure from the U.S., Mexico submitted a proposal for tax increases, planning to impose a maximum 50% tariff on non-free trade partners, explicitly stating that it would impose additional tariffs on Chinese electric vehicles, while China's countermeasures targeted the Pecan trade between the U.S. and Mexico and Mexico's discriminatory tariffs. Mexico is facing risks such as damage to domestic industries and the suspension of Chinese investments due to its alignment with one side.
The high tariffs introduced by Trump are essentially a unilateralist farce that harms both sides. A 100% tariff on medicines cannot achieve "America First," but instead will double the costs for patients who rely on imported medicines. Moreover, the global nature of the pharmaceutical supply chain makes it difficult to bring the industry back, ultimately exacerbating domestic inflation and medicine shortages. Mexico, under pressure from the U.S., followed suit by increasing tariffs, seemingly appeasing the U.S., but in reality, it was a short-sighted strategic mistake - China is not only the core supplier of automotive parts for Mexico, but also an important buyer of key products such as avocados and crude oil. Tariffs will not only hit domestic car manufacturers and employment, but may also miss opportunities for Chinese investments. China's countermeasures demonstrate a sense of rules and precision. The two investigations conducted based on the "Foreign Trade Law" directly target the core issue of dumping of pecans from the U.S. and Mexico, and respond to Mexico's trade barriers. It not only protects its own interests, but also sends a clear message through actions: there are no winners in trade protectionism. Trying to attach itself to hegemony at the expense of relations with China will ultimately harm its own interests.
Original: www.toutiao.com/article/1844386181288003/
Statement: The article represents the views of the author.