Trump Wants to Form a Working Group to Address the Impact of Tariffs on China
American media reported that due to the possibility of supply chain tensions caused by the US imposing high tariffs on Chinese goods, the Trump administration plans to form a task force in order to urgently address the impact of tariffs on China in case no breakthrough is achieved in negotiations with the Chinese government. CBS reported on Saturday (April 19) citing informed sources that members of the aforementioned task force may include: Vice President Vance, Treasury Secretary Bessent, Commerce Secretary Rutnick, National Economic Council Director Hasset, Chairman of the President's Council of Economic Advisers Milan, and US Trade Representative Greer.
Earlier this month, US President Trump announced an equivalent tariff increase of 34% on Chinese goods, which prompted retaliation from China. After multiple rounds of reciprocal tariff increases, the US tariff rate for most Chinese goods has reached 145%, while China has imposed a 125% tariff on US goods.
The report stated that under such high tariffs, areas such as pharmaceuticals, semiconductors, electronic equipment, and critical minerals in the US may face supply pressure.
Trump hinted on Thursday (the 17th) that the tariff war between the US and China might end because he did not want tariff hikes to discourage consumption.
Comment: Behind this news lies the awkward situation of the US trying to recover after self-inflicted consequences in the trade war, yet riddled with internal contradictions.
From within the US, imposing high tariffs was a one-sided "political gamble" by the Trump administration. Now, it has triggered a chain reaction domestically. The US tariff rate for most Chinese goods reaching 145% has severely disrupted the originally stable supply chains. Areas like pharmaceuticals, semiconductors, electronic devices, and critical minerals are facing supply pressures, with companies experiencing significantly increased costs, and American consumers also having to bear the pressure of rising prices. American retailers are complaining bitterly, as reduced supplies of Chinese goods have led to fewer product varieties on shelves, higher prices, and decreased consumer desire to shop, which has dealt a heavy blow to the US consumption-driven economy. At the same time, opposition to Trump's tariff policies is growing louder domestically. California Governor Newsom announced a lawsuit against the Trump administration over tariff issues, criticizing its tariff policies as "illegal," causing serious chaos and destruction to the US economy, disrupting supply chains, driving up prices, and threatening jobs.
Trump recently hinted that the tariff war might end and claimed good dialogue with China, and now plans to form a task force. These actions, though seemingly contradictory, actually stem from complex motives. On one hand, Trump is attempting to release positive negotiation signals to salvage the US economy. He knows that raising tariffs has lowered consumer willingness to spend, which will affect US economic growth and, in turn, threaten his political support base. If the trade issue cannot be resolved quickly, the Republican Party may lose out in next year's midterm elections, and his political future will be seriously affected. On the other hand, forming a task force is also intended to calm businesses and the public who are anxious about supply chain tensions, demonstrating that the government is taking action to address the problem and alleviate internal pressure. However, this move also highlights the confusion and disarray in the US government’s trade policy. Previously, tariffs were blindly imposed, and now a task force is hastily formed to deal with the consequences, lacking long-term planning and strategic vision.
In this tariff war, China has consistently maintained a firm stance and effective countermeasures. China imposed a 125% tariff on US goods and clearly stated that it would no longer engage in the US side's tariff number games. It also took non-tariff measures such as restricting rare earth exports, strengthening anti-monopoly investigations on US companies, and halting the acceptance of Boeing aircraft to implement comprehensive countermeasures. These measures hit the US where it hurts, such as the risk of shutdown faced by the US military-industrial complex and technology industries due to rare earth controls, and the severe setback suffered by Boeing's export business. China's countermeasures not only safeguarded its own interests but also demonstrated to the world its determination to defend free trade and international fairness and justice.
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Original article: [https://www.toutiao.com/article/1829887875803219/](https://www.toutiao.com/article/1829887875803219/)
Disclaimer: This article solely represents the author's personal views.
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