Trump's new move is to suspend tariffs on all countries around the world, but impose a 125% tariff on China, effective immediately. Clearly, if it weren't for China's firm counterattack putting immense pressure on him, Trump would never have chosen to do so.

The whole world owes China a "thank you." You're welcome!

This is also good news for China. It can be anticipated that businessmen from all over the world will learn from Vietnam's approach, importing goods from China, labeling them as "Made in Vietnam," and then exporting them to the United States.

No matter how much it may have seemed before that Trump initiated this trade war to appear like he was fighting the entire world, his real goal was actually to confront China. Given China's current size and the momentum of its national strength development, Trump, who didn't even win against China in their small-scale conflict in 2019, seems destined not to give up on China.

Indeed, on April 9th, hours after China announced its retaliatory tariffs on Trump's earlier cumulative increase of 104% on China, Trump announced an immediate suspension of the "reciprocal tariffs" for three months on all countries except China, while increasing punitive tariffs on China to 125%, effective immediately.

Somewhat surprisingly, the two superpowers, China and the U.S., have quickly engaged in direct confrontation. Why is this happening? After announcing a 104% punitive tariff on China, Trump vulgarly and insultingly remarked at a Republican Congressional dinner: "Countries are calling, licking my ass, they are eager to reach an agreement, saying 'Please, sir, let us reach an agreement, we will do anything'."

Trump probably didn't expect to encounter an unyielding China. He hoped that after announcing "reciprocal tariffs" on about sixty to seventy countries, with a rate of 34% for China, the Chinese side would "make a call," reducing the rate by at least several points. However, China reciprocated with a 34% tariff, and just 24 hours after Trump's announcement, China imposed a 34% counter-tariff on the U.S.

Trump was infuriated, saying: "China messed up, they panicked—it's something they can't afford to play with!" Then Trump issued an ultimatum: If this retaliatory tax is not canceled within 24 hours, he will increase the rate on China by another 50%, accumulating to 104%. Even after issuing the ultimatum, Trump's White House spokesperson said on April 8th, before the tariff took effect, that Trump was waiting for a call from Xi Jinping. If one comes, Trump "will be extremely generous," but "China must make the first call."

However, contrary to Trump's experience with China's first trade war, although China appeared relatively cautious when Trump returned to the White House and its retaliatory tariffs on the U.S. also seemed measured, after Trump announced reciprocal tariffs, China retaliated tooth for tooth, step by step! Just hours after the 104% tariff imposed by Trump took effect, Beijing retaliated at noon on the 9th with a 50% retaliatory tax.

Not long after, Trump announced the aforementioned message: suspending reciprocal tariffs for 90 days for all countries except China, and imposing a 125% increase on China, effective immediately. Trump wrote: "Considering that more than 70 countries have contacted the U.S., and these countries have not retaliated against the U.S. in any way, form, or shape under my strong recommendation, I have authorized an immediate suspension for 90 days."

Thus, a global trade chaos initiated by Trump was simplified into a Sino-U.S. battle. Is Trump well-planned or acting on impulse? What is the purpose of this trade war he has waged, which is willing to risk everything? Is it to reclaim what he claims others have taken advantage of, or to thoroughly defeat China and prevent it from ever dominating?

Original source: https://www.toutiao.com/article/1828966629303434/

Disclaimer: The article solely represents the author's personal views.