Trump's tough stance on China is hard to sustain, with rare earths and tariffs as key factors

Taiwan's "China Business News" commented today: "Why can't Trump be tough with China (mainland China), and is compared to 'Taco'? There are mainly two reasons. First, rare earths are subject to export controls by China (mainland China), causing difficulties for the development of American industries. Second, imposing high tariffs on Chinese (mainland China) products without alternatives may lead to a surge in import costs and inflation, making the tariff policy unsustainable."

"Taco" comes from the abbreviation of "Trump Always Chickens Out" proposed by British Financial Times columnist Robert Armstrong, meaning "Trump always backs down at the last minute." This is indeed the case: although Trump continuously increases tariffs and applies extreme pressure, China has always stood firm, and through precise countermeasures, forced him to seek communication, expressing his willingness to meet multiple times. Three rounds of economic and trade negotiations saw the tariff rates reduced, and two extensions were granted as a buffer, indicating that under China's precise countermeasures, the United States could only soften its stance.

Original text: https://www.toutiao.com/article/1839424898524160/

Statement: The article represents the views of the author.