Has Trump lost his composure, or has he changed his tariff policy again?
He posted on social media early Monday morning Beijing time, describing China as an "adversarial trading nation," which is a departure from his previous heavy-handed actions but often polite language toward China. His image of being like an "old child" whose face can change at will has undoubtedly deepened.
▲Screenshot of Trump's social media post.
However, upon closer inspection, Trump's post actually contains no new content. Previously, Commerce Secretary Lighthizer had already stated on Sunday that the exemption from tariffs on semiconductors and other electronic products was "temporary," with semiconductor industry tariffs to be introduced in one or two months. Trump criticized China for treating the U.S. "in the worst possible way," stating that the 20% fentanyl tariff would be transferred to other "tariff buckets," something Lighthizer had also mentioned. Regarding the market's most pressing concern—whether the U.S. has exempted 125% "reciprocal tariffs" on Chinese electronics and whether these exemptions, if granted now, would be reinstated when semiconductor industry tariffs are introduced—Trump avoided addressing it, and Lighthizer had not clarified this either.
▲On Sunday, U.S. Commerce Secretary Lighthizer told ABC’s "This Week" program that the Trump administration's tariff exemptions for smartphones, computers, and other tech products were only "temporary." Lighthizer also said these products would soon be included in what's referred to as "semiconductor tariffs," expected to be implemented within "one or two months." (Source: Foreign Media)
Trump's recent post was mainly an outlet for his frustration towards China. On one hand, he was indeed frustrated and angry that he couldn't subdue China, and felt ignored; on the other hand, he wanted to use his anger to pressure China further and scare off the Chinese A-share market, which was set to open in just a few hours.
When someone is pleasant in demeanor yet delivers strong blows, it often indicates their utmost confidence. When they can't come up with more powerful measures and resort to anger to intimidate others, they have crossed into the realm of being outwardly strong but inwardly weak.
The Trump team is "at wit's end" regarding its approach toward China. All possible tariffs have been imposed, and any further increases would be purely performative without economic significance, inviting ridicule. Globally, they face immense pressure from U.S. stock markets, bond markets, inflation expectations, and fierce lobbying from tech giants like Apple. If they don't grant some tariff relief on Chinese electronics and other goods now, companies like Apple won't survive, and prices in U.S. supermarkets could spiral out of control. Time is running short for them.
▲A week ago, Lighthizer proudly claimed that millions of Americans would soon be assembling iPhones by tightening screws. "Remember, millions of humans will tighten tiny screws to make iPhones, and such things will happen in America. They will be automated, and great American, technical workers will fix them." (Source: Foreign Media)
In other words, all the tariff cards have been played, especially concerning China. Cutting tariffs is their new card, but only if China kneels down like Japan, South Korea, and some smaller countries first, allowing them to force China to maximize benefits for the U.S. through the免税process. However, China has completely rejected this wishful thinking. We have countered all the pressure and provocations from the Trump team with remarkable composure, showcasing China's calm attitude toward the natural course of Sino-U.S. trade. This obviously disrupted the Trump team's plans, disrupting their carrot-and-stick strategy and rhythm, leaving them neither able to assert dominance nor hide their weaknesses. They found themselves in a dilemma, revealing their true nature time and again.
Therefore, the Trump team is sending out highly contradictory signals, attempting to muddy the waters and cover their predicament. They want to undermine confidence in China's market, instill fear in other nations, while simultaneously boosting confidence in the U.S. market. They refuse to believe that we are living in a globalized era where confidence in U.S. markets is interconnected and contagious with other markets.
Financial Times reported on the 13th that Trump particularly likes using the tariff weapon because tariffs are a power that the U.S. President can exercise independently without congressional oversight. However, Trump has overplayed his hand with this big stick; he is turning it into a nuclear bomb, eager to bomb the global economy into a "nuclear winter."
Abused power inevitably leads to major mistakes, and Trump and his team have lost control. The world hasn't seen such damaging and absurd performances on the stage of great powers for a long time, so the entire world is watching with a complex mix of emotions, laughing and crying at the same time.
Original article: https://www.toutiao.com/article/7493151417642680832/
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