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https://theconversation.com/what-the-spiralling-trade-war-means-for-relations-between-the-us-and-china-254311>
"Donald Trump has partially walked back on his so-called “liberation day”
tariffs on nearly all US imports after fears mounted that the move would result
in a global recession and much higher borrowing costs for the US government.
On Wednesday, April 9, a mere 13 hours after his higher rate of “reciprocal
tariffs” had come into effect, Trump announced they would be paused for 90
days.
“I thought that people were jumping a little bit out of line, they were getting
yippy, you know … a little bit afraid,” Trump said to reporters outside the
White House. Markets soared immediately upon hearing the news.
But at the same time, a volatile new stage in America’s trade war with China
has emerged. The White House has excluded China from the pause and has hiked
tariffs on all Chinese imports to 125%. This, Trump says, is because Beijing
has shown “disrespect” to Washington and global markets.
Beijing, which has declared it will “fight to the end if the US side is bent on
going down the wrong path”, was quick to respond. It has announced duties of
84% on American products and services, and has even floated the possibility of
banning the import of Hollywood films.
What China’s response has shown is that it is no longer the same country as it
was in 2017, when Trump managed to obtain some trade concessions from it by
imposing tariffs. Beijing seems more willing to strike back at Washington, as
well as showing signs of being more proactive in its response to American
measures.
The impact of China’s response has not yet been fully realised, but tariffs
have already raised the spectre of increased prices in the US. Many of the
clothing and consumer electronics that Americans buy are shipped from China.
It’s possible that far from boosting Trump’s popularity, these tariffs may
eventually end up reversing it.
At a fundraising dinner in Washington, less than a day before he shelved plans
to hike tariffs on US trading partners, Trump insisted: “I know what the hell
I’m doing.” But his subsequent loss of face in pausing tariffs for other
countries may mean he has no option but to double down on a tit-for-tat trade
war with China.
China is his administration’s go-to villain, and any delay or reversal in
responding to Chinese retaliation will be a humiliation to Trump’s strongman
image. This suggests a tumultuous period ahead for relations between China and
the US."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
