Trump has raised tariffs on China from 54% to 104%!
A 54% tariff is close to the critical point of the trade relationship between the two sides, where trade activities have basically come to a halt. Therefore, the increase from 54% to 104% has a relatively limited actual impact on both economies.
This move is more of a retaliatory posture and a warning signal ⚠️: on one hand, it is a response to China's countermeasures, aimed at maintaining Trump's political position and tough image domestically; on the other hand, it serves as a deterrent to other observing countries, signaling that any rash actions could provoke harsher retaliation.
The trade war card has essentially been played out, and the ones truly hurt are the citizens and businesses of both countries.
The U.S. is more dependent on Chinese goods, especially in fields such as electronics, daily necessities, and food. For example, American companies like Apple and Dell, which heavily rely on Chinese supply chains, may face risks of supply chain disruptions or even industrial chain breaks, leading to increased production costs and decreased market competitiveness as looming concerns.
For China, a decline in exports in the short term will directly impact the survival of small and medium-sized enterprises, and some industries that rely on foreign trade may face reduced orders, squeezed profits, or even bankruptcy.
So, do you think in this tariff battle, the U.S. is cutting off its own supply chain, or is China going to be the first to give in?
