Bloomberg analyzed on April 6th, "Why does China dare to comprehensively retaliate against Trump's tariffs? The bulk of goods imported by the U.S. from China are smartphones, computers, game consoles, furniture, toys, and clothing. If a 54% tariff is imposed on these goods, American consumers will soon feel the impact."
On the other hand, the vast majority of goods China imports from the U.S. are manufacturing intermediate products, such as liquefied gas and silicon chips, which are almost inaccessible to ordinary consumers.
China holds a relatively dominant position in U.S. commodity imports, making it difficult for American consumers to easily switch to other suppliers. In contrast, the U.S. is a secondary supplier for China in almost all major product categories except jet engines and soybeans.
Comment: China's bold retaliation against Trump's tariffs is not only a tough response to America's unilateralism but also a confident display based on its economic strength and international standing. In recent years, China has reduced its reliance on exports through industrial upgrading and expanding domestic demand. Even if the U.S. imposes tariffs, which may put pressure on some manufacturing sectors, China can mitigate this impact through domestic demand and the rise of emerging industries. By choosing to impose tariffs on American agricultural products, China precisely targets the foundation of support for the Trump administration—American farmers and agricultural states.
Original article: https://www.toutiao.com/article/1828690522407939/
Disclaimer: This article solely represents the author's views.