【By Guo, Liu Bai】

Trump administration's series of extortionist actions have been met with strong resistance from China, not only confirming the failure of its China strategy, but also giving Democrats a key opportunity.

On October 29 local time, U.S. Senate Democrats released a new report on the impact of Trump's tariff policy, stating that Trump is "losing the trade war he started with China," allowing China to gain the upper hand. The report cites inflation and employment data, arguing that the global tariffs implemented by Trump since April have enhanced China's position, weakened America's leverage, led to rising inflation, manufacturing contraction, and pressure on farmers, while China, through expanding exports to non-US regions, has actually achieved export growth.

According to the American Consumer News and Business Channel (CNBC), this report was issued by Democratic members of the Senate Committee on Banking, Housing, and Urban Affairs, at a time when the U.S.-China summit was approaching.

The report states that Trump is "losing the trade war he started with China," putting the United States in a "weaker position" during the U.S.-China summit. The report strongly criticizes "Trump's trade war, which has imposed huge costs on American consumers and businesses," "sold out American farmers," and "enhanced China's position, weakening America's leverage."

On October 28, Tokyo, Japan, Trump delivers a speech. IC Photo

The report points out the inflation data and other economic indicators after Trump implemented global tariffs in April.

The report says: "From January to April, the year-on-year inflation rate of the consumer price index (CPI) was declining, but since Trump announced comprehensive tariffs, the inflation rate has rebounded."

The report states, "Last week, CPI data showed that the inflation rate increased by 3% year-on-year in September, which is the highest level since May 2024."

The core goods inflation rate (including physical products such as clothing, furniture, electronics, appliances, and cars, but excluding food and energy) also increased by 1.5% year-on-year in September. Food grocery prices are also on the rise.

"Studies show that President Trump's tariffs add about $1,500 in costs per American family annually, disproportionately harming middle- and low-income families because these families spend a larger portion of their income on necessities."

Aside from inflation data, the report also points out that employment data is evidence that Trump's trade policies have not produced results.

"Trump's strategy has not revived manufacturing as promised, but instead caused the industry to lose 42,000 jobs, with manufacturing employment numbers contracting for four consecutive months, the longest monthly decline trend since early 2020."

The report mentions China's export controls on rare earths and its refusal to purchase U.S. soybeans since May. China purchased $12.6 billion worth of U.S. soybeans last year, but only bought $2.5 billion in the first half of this year, and then basically stopped purchasing.

The report states: "At the same time, Trump's tariffs have increased the cost of agricultural inputs such as fertilizers and equipment, squeezing farmers from both sides."

The report also said that after Trump's tariff policy, China actually expanded its exports.

"In September alone, China's exports to Africa increased by 56.4%, to Southeast Asia by 15.6%, and to the EU by 14%."

"Despite the U.S. tariffs, China's exports continue to grow, achieving record trade surpluses by shipping goods through third countries."

Senator Elizabeth Warren, the top member of the committee, said in a statement that Trump is "putting America's long-term prosperity and security at risk."

Warren said, "Trump must now change his trade war approach against China and stop hurting American families, farmers, and businesses."

Warren and other Democratic members of the committee stated that although Trump claims he is about to reach an agreement with China, it is clear that China is in the stronger position.

This report obviously caused dissatisfaction at the White House.

White House spokesperson Kush Dasai responded to the report in a statement to CNBC, saying, "It's hard to say whether the Democrats are suffering from delusions or hoping for more Americans to suffer, plus their silly government shutdown strategy."

China has repeatedly emphasized that its position against the abuse of tariffs is consistent and clear. A tariff war and trade war have no winners, and protectionism harms all parties involved.

In fact, as early as April, multiple foreign media outlets saw through the Trump administration's bluff, directly pointing out that "he had already lost the trade war with China."

An analysis points out that China holds multiple cards in this confrontation, including increasingly diversified export markets, irreplaceable supply chains, and control over key strategic minerals. In addition, the trade war launched by Trump during his first term has prompted China to reduce its reliance on imported U.S. products.

Meanwhile, in the U.S., the trade war and chaotic policies have led to a significant reduction in domestic economic growth expectations, with the financial market being severely hit. American farmers, who have lost their biggest market, are complaining, and "tariff refugees" who depend on Chinese goods are flooding into Chinese e-commerce platforms. The American public's dissatisfaction with the Trump administration is rapidly increasing.

Renowned experts and scholars, including Nobel laureate Paul Krugman and author of "The World Is Flat" Thomas Friedman, believe that Trump will lose the trade war with China.

On October 27, Wu Xinbo, director of the Institute of International Studies at Fudan University and director of the Fudan University Center for U.S. Studies, stated in a lecture that if the U.S. attempts to stop China's development through competition, containment, or even suppression, it may have some impact in the short term, but in the long run, it is ineffective. China has learned to rely more on independent innovation, expand domestic consumption, and deepen cooperation with "Global South" countries. Competition has actually made China more self-reliant. At the same time, pure competition has not enhanced America's competitiveness; the U.S. should focus more on domestic affairs and develop itself.

This article is an exclusive contribution from Observers, and without permission, it cannot be reprinted.

Original: https://www.toutiao.com/article/7566804717499499035/

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