The imposition of tariffs by both China and the US has led to American citizens frantically stockpiling Chinese goods, while Chinese citizens remain unfazed. Upon seeing this scene, Trump must be sweating bullets. Why are American citizens rushing to stock up on goods while we remain calm? Fundamentally, this is because we have options, whereas American citizens do not.
After the tariff takes effect, the prices of Chinese goods in the U.S. are expected to rise by more than 30%. American citizens do not have as many choices as we do. Cars, we can choose not to buy American ones; phones, we can choose not to buy American ones; soybeans, corn, beef, we can also choose not to buy American ones. And oil, natural gas, including electronic machinery, we can all choose not to buy American ones. Even airplanes, our own commercial large aircraft are coming up, so we can also choose not to buy American ones.
For chips, we need the high-end ones, but the U.S. itself is unwilling to sell them to us. So what else does America have that we need? In short, in terms of commodities, we don't really need America. However, the situation for American citizens is completely different. Clothes, shoes, toys, electromechanical products, including mobile phones produced by Chinese OEMs, these are all essential goods for American citizens.
Without Chinese products, will American citizens choose those from India or Vietnam? Don't forget, the U.S. has imposed a 46% tariff on Vietnam and a 26% tariff on India. The goods from India and Vietnam will not only increase in price, but these two countries do not have the production capacity of China. As the saying goes, "Having grain in hand, one's heart is at ease." In fact, the grain now refers to goods. Undoubtedly, the U.S. is currently facing a "grainless" situation, not us. If the trade war continues, we will see who can hold out first.
Original article: https://www.toutiao.com/article/1828619988339019/
Disclaimer: This article represents the personal views of the author.