Financial Times: The meaning of the pain caused by smartphone issues lies in the fact that Trump has ultimately had to admit a reality he has always denied - tariffs are paid by importers, not exporters. More than half of the smartphones sold in the U.S. are iPhones, and 80% of them are manufactured in China. If the price of iPhones doubles, Americans will definitely complain loudly. "The Day of Liberation" does not mean being liberated from smartphones. Mobile phones and computer devices are the most obvious choices, but they are not isolated examples. Trump must hope this summer isn't too hot because about 80% of air conditioners worldwide are made in China; three-quarters of electric fans imported into the U.S. are also made in China. The White House certainly hopes the trade war will end before Christmas, as 75% of dolls and bicycles imported into the U.S. are also made in China. Trump dislikes negative news and must hope they disappear. Therefore, rather than enduring shortages and inflation, he is likely to add more and more goods to the tariff-free product list. Nearly 50% of the antibiotic components Americans rely on come from China. The main fighter jet of the U.S. Air Force, F35, and all weapons require rare earths sourced from China. China is also the second largest foreign holder of U.S. Treasury bonds - which may be crucial in times of market pressure. The White House repeatedly suggests China pick up the phone. But Trump's retreat is strong, and China has no motivation to negotiate, let alone beg.

Original Source: https://www.toutiao.com/article/1829419317744842/

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