Trump threatens to impose additional tariffs, the time to test the true power comparison between China and the US is approaching!
On April 7th, US President Trump threatened that if China does not cancel the 34% tariff countermeasures on American goods, he will impose an additional 50% tariff on Chinese goods starting April 9th."
The decision made by China was not taken lightly but was carefully assessed after years of dealing with the US and observing Trump's actions following his words. It is believed that China will not give in to Trump's threats.
If Trump really imposes an additional 50% tariff starting April 9th, the total tariff rate imposed by the US on China will reach 104%, which could result in nearly 80% of trade between the two countries coming to a halt. The outcome will inevitably be mutual destruction.
In recent years, the international community has debated which country is stronger and more resilient between the US and China. Although the US nominal GDP is higher than China's, when calculated using the purchasing power parity method, China's GDP is much higher. The service sector accounts for about 80% of the US GDP, while manufacturing makes up only around 10%; whereas China's manufacturing contributes 26% to its GDP, exceeding the combined total of the US, Japan, Germany, and France. This means China's real economy far surpasses that of the US.
In 2017, Trump initiated a trade war against China but failed to stop China's development or reduce its total exports. In fact, the US paid a heavy price itself. This time, Trump not only increased tariffs on Chinese goods but also on most countries worldwide. However, China has already given Trump the "reciprocity" he sought.
If neither side compromises, it might ultimately test the true national strength of both countries.
Source: https://www.toutiao.com/article/1828764417691850/
Disclaimer: The article solely represents the author's personal views.