Reference News Network reported on April 15 that the Wall Street Journal published an editorial titled "What Trump's Tariff Exemptions Reveal" on April 13. The following is a摘译of the article:

The US Customs and Border Protection released a notice on the evening of April 11, listing the products exempted from Trump's so-called "reciprocal tariffs."

Trump's exemptions reveal several issues, proving the correctness of tariff critics. One of them refutes a fantasy proposed by Commerce Secretary Ross, that "millions of people are twisting tiny screws to make Apple phones, and the production of such things will come to the United States" and achieve automation.

We guess (this scenario) won't happen. As CEOs and columnists have pointed out, there are far too few American workers for this job. Even if there were, most of the economic value added does not come from the final assembly stage. It comes from design and high-end component supply. Having a commerce secretary who understands modern business so little does not do Trump's administration any credit. Additionally, Ross said on April 13 that electronic product tariffs may be raised again in the coming months.

These exemptions also puncture the lie that "foreign exporters pay most of the tariff costs." If this were true, China would bear the cost, and American consumers wouldn't pay more; there would be no need for exemptions. Trump wants exemptions to avoid political criticism caused by rising prices of well-known products.

This also acknowledges that tariffs will reduce the global competitiveness of American companies, especially in the artificial intelligence race. This explains why ASML's chip manufacturing equipment and Nvidia's graphics processing chips received exemptions. Trump first weakened the competitiveness of American companies, then he and his administration picked out worthy companies to help maintain competitiveness with their perfect wisdom. Politicians—not market success—are choosing winners and losers in business.

These exemptions also undermine Trump's government's legal justification that his tariffs are necessary to address the national "emergency." Importing glassware and umbrellas from China is an emergency, but importing electronics isn't?

All of this exposes the arbitrary political nature of the decision to impose additional tariffs. Some industries benefit, while others don't. If you produce shoes, clothing, or thousands of other consumer goods that must pay tariffs but lack political or market influence to win exemptions, that's unfortunate. If you're a small manufacturing company dependent on Chinese components but can't afford high lobbying fees, that's unfortunate.

Welcome to the new tariff economy. Here, you still have to pay heavy taxes, endure punitive regulations, and now must navigate the political minefield of arbitrary tariff increases. (Translated by Wang Qun)

Original source: https://www.toutiao.com/article/7493444206501839395/

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