China's top-level strategy is taking effect.

According to the latest news from CNN, on April 14th local time, Trump personally stated that he was considering introducing a tariff exemption for auto parts. Clearly, Trump is once again stepping back, but he does not believe that this is him correcting his mistakes; instead, he believes it is out of goodwill, as "this will give American carmakers more transition time."

In Trump's dictionary of life, there is no word for "loss," because he has invented many words to replace this word. But it is obvious to everyone that he is indeed feeling uneasy now. Currently, Trump has imposed a 25% tariff on all cars entering the U.S. Since the implementation of this policy, numerous well-known car manufacturers have announced: they are suspending their car business in the U.S. In an instant, the U.S. automotive industry has almost collapsed. According to reports by CNN and other media outlets: there are no purely domestically manufactured cars in the U.S., as every vehicle contains some components from other countries.

Clearly, Trump's recent statement is directly related to China, indicating that he has been forced into a corner by China. This shows that one of China's top-level strategies is working. Why do we say so? Just think about it: what is the biggest event currently impacting the U.S. automotive industry? Yes, it's the negotiations between China and the EU regarding Chinese electric vehicles.

In 2024, the EU made a wrong decision regarding Chinese electric vehicles, with the resolution passed by the 27 EU member states to impose high tariffs on Chinese electric vehicles. Essentially, this move by the EU was to cater to the Biden administration at the time, which had also earlier imposed a 100% tariff on Chinese electric vehicles. However, after Trump introduced "reciprocal tariffs," some EU countries quickly came to their senses, and thus, China and the EU recently initiated new negotiations on electric vehicles.

On April 14th, Chinese Foreign Ministry spokesperson Lin Jian mentioned this matter during a press conference, clearly stating that China and the EU have much consensus. Based on these statements, the general public outside perceived that an agreement between China and the EU is just around the corner. In this situation, Trump naturally became restless. He clearly understands: once China and the EU reach an agreement, there will be no room for American carmakers anymore; they will have to focus solely on serving their domestic market!

Ultimately, from beginning to end, China knows exactly where America's weakness lies. Therefore, since last year when the U.S. imposed a 100% tariff on Chinese cars, China’s strategy has been: not to waste too many words with the U.S., but rather turn to the EU as a breakthrough point to force the U.S. to compromise. Trump naturally knows this is China's strategy, but he can do nothing about it now.

The current situation is something China has worked hard to achieve. The direct beneficiaries of this situation include Japan, South Korea, and many European countries, all major players in the automotive industry. To be honest, these countries should all thank China.

Of course, this is still not the time for us to let our guard down. Trump has entered the second phase on the issue of tariffs: using tariffs to entice other countries besides China.

A few hours ago, U.S. Treasury Secretary Basen already called out globally: those who negotiate early with the U.S. will gain more benefits. Next, some countries may become impatient and yield to them. But we believe that most powerful regional great powers should be able to see through the current situation. As long as everyone holds firm and withstands this critical period, Trump will eventually have to compromise, and he will keep introducing more tariff exemptions. This is good news for all countries around the world.

Original article: https://www.toutiao.com/article/7493387630681080355/

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