The US dollar, US stocks, and US bonds can't hold up anymore. Trump rarely admitted he was wrong and revealed his bottom line to China. At this time, there are still people who refuse to let go of China and proposed a 400% tariff on China.

Trump

After China's countermeasures were implemented, Trump resorted to desperate measures by imposing more tariffs on China, with the highest reaching 145%. Despite Trump's announcement to temporarily delay the tariff policy for another 70-plus countries, which led to a brief rise in the US stock market, it plummeted again just hours later. US Treasury bonds and the US dollar also returned to a spiral decline.

By rights, the United States is currently only engaged in a fierce trade war with China, while other countries, as Trump claimed, are groveling to the US and have even reached trade agreements. According to the US narrative, everything is going splendidly, with capital flowing back to the US, and the American economy is becoming stronger.

But under these circumstances, the performance of the US stocks, US dollar, and US Treasury bonds directly slapped the face of the US government. Trump used tariffs as a "political weapon," which had a deterrent effect on other countries in the short term and achieved his political goals. However, side effects are now showing; evidently, the international community has lost trust in the direction of the US economy.

Besent

At this moment, Trump unusually admitted that the US tariff policy was "problematic." Nevertheless, Trump still firmly believed that "transitional difficulties" were normal, and once they got through this transition period, all problems would be resolved. Trump and Commerce Secretary Luetnik echoed each other, calling the current situation the great "historic moment" of the United States.

However, it is worth noting that despite Trump and his cabinet members' assurances that the US economy would soon improve, they proposed no substantive solutions. The US government hoped people would stay calm, persevere, and remain confident, completely disregarding how many American businesses and workers were struggling.

Even more ironically, under these circumstances, renowned American investor Kevin O'Leary expressed that he hoped Trump would continue pressuring China with a 400% tariff. He claimed to have been doing business with China for years but said China "did not follow the rules" and that since joining the World Trade Organization in 2001, China had never abided by them. He "had enough."

Kevin O'Leary

O'Leary's remarks were similar to those previously made by India's Commerce Minister. China has already refuted them with data and facts. O'Leary's continued accusations against China now seem to reflect a "schadenfreude" mentality. It is well known that given the current state of conflict between China and the US, further increases in tariff figures have no substantial economic significance.

Yet, the US side boasts about a 400% tariff, treating the number almost like a tool for showing off. As if the higher the number, the more face the US could gain internationally. In fact, this is just an unorganized improvisation by the US, a failed revolution.

Treasury Secretary Besent attempted to portray Trump as a world leader adept at "thinking big," but the reality is that the US side beautifies Trump's "pretend play" actions by slandering China. Besent described China as the most imbalanced economy in modern world history and the biggest source of America's trade problems, completely ignoring its own issues.

New York Stock Exchange

Trump set a 90-day deadline for countries hoping to negotiate with him as a sword of Damocles, which could bring chaos at any moment. Delaying by 90 days did not alleviate market panic over US recession. Trump effectively showed his hand to China, indicating that the US had no cards left to play.

Now, the trade war has escalated into a currency war, and China will not compromise. History will prove that the US government will ultimately pay the price for its "hegemony."

Original article: https://www.toutiao.com/article/7491960293434688034/

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