Trump's Repeated Stance on China Tariffs: The Underlying Reasons Are Worth Considering
Trump's latest statement claims that he will not lift tariffs on China unless substantial concessions are made by China. This is not the first time he has been inconsistent on the issue of tariffs.
Three Key Interpretations:
1. Political Posturing Over Substance: The statements are more about maintaining a tough image, with limited actual policy space.
2. Negotiation Chip Game: Seeking more negotiation advantages through pressure, but the effectiveness is questionable.
3. Difficult Position: The earlier stance was too hardline, making it difficult now to find a dignified way out.
Market Impact Predictions:
1. Short-term market volatility may intensify.
2. However, the substantive impact is limited, mainly causing psychological disturbances.
3. Investors need not overreact; it is more important to focus on actual policy changes.
This repeated posturing reflects the current dilemma in U.S. policy towards China: wanting to maintain a tough stance while also struggling to bear the costs of a full confrontation. Ultimately, it is likely that a compromise solution will be sought through private negotiations while maintaining a facade of toughness.
