Since the U.S. opened the tariff war against China, both economies have been affected.
Trump originally intended to use tariff chains to strangle the throat of the Chinese economy, but did not expect China to respond so firmly with countermeasures, which instead affected his own country's economy.
Not only has the stock market plunged for days, but even the consumer index has fallen below expectations, and inflation pressures have also breached historical peaks.
Initially, it was thought that Trump would continue to hold on, but recently he announced a reduction of tariffs on China from 145% to between 50% and 65%.
This veiled act of capitulation is completely different from the previous arrogant style, but do you really think Trump is sincerely willing to tear down the tariff wall?
However, the U.S.'s tax cut actions still hide ulterior motives; they categorize Chinese goods into different tiers, allowing tariffs on those they deem non-threatening to be pushed down to 35%.
Don't think that tax cuts mean capitulation; the Americans have hidden intentions in this tiered operation, leaving their companies enough buffer.
As for whether the U.S. will voluntarily cut tariffs, whether China will follow suit, our Ministry of Foreign Affairs has already responded.
The details of the tax cut plan and China's stance.
Trump's tax cut declaration this time seems more like a carefully designed sleight of hand.
The common promotional tactic in business is to raise the marked price and then display a discount, creating the illusion of concessions; his tactic is no different.
First, they pushed tariffs up to a historical peak of 145%, then announced a reduction to 35% to mislead people into thinking they made a significant concession.
In reality, this number is still more than twice the regular tariffs from his first term, not to mention the normal levels before the trade war.
So-called tax cuts are merely transaction chips with a clear price tag, which must be tied to concessions from China to take effect; at its core, it’s still candy bait thrown after swinging the big stick.
What’s even more ridiculous is that he is simultaneously brewing a 'tiered tariff' plan within the White House, claiming to impose a 35% tariff on goods deemed 'non-threatening to national security,' while reserving over 100% heavy tariffs on 'strategic sector' goods.
Such a classification standard filled with interpretative flexibility effectively leaves a backdoor for the U.S. Department of Commerce, which can redefine the scope of tariffs based on needs at any time.
The sudden shift in attitude reveals the embarrassment following a strategic misjudgment.
China's countermeasures exceeded expectations, and continuous warnings from U.S. economic data forced him to adjust his strategy of extreme pressure.
But a surface tactical retreat does not necessarily mean he has given up on the fundamental pressure on China, just like a street con artist temporarily hiding stolen goods does not mean he is turning over a new leaf.
Ever since Trump hinted at cutting tariffs on some Chinese goods to a minimum of 35%, many have wondered if China would also follow suit and lower the tariffs imposed on U.S. goods.
In response to Trump's pretended 'concessions', a spokesperson from the Chinese Foreign Ministry threw out the hardline response: 'Fight, and we will accompany you to the end; negotiate, and the door is wide open,' making the position clear.
China has made it clear: if they truly want to sit down and talk, the U.S. must first retract the threats; equality, respect, and mutual benefit are all essential.
Wanting to sign an agreement while also applying extreme pressure simply won't work.
Since Trump fired the first shot in the trade war in 2018, China has long since figured out the coping strategies.
When it was time to stand firm, China never flinched; when it was time to be clear-headed, China never got carried away. The Ministry of Commerce has already made it clear that China and the U.S. are not at the negotiation table at all; any so-called agreements are pure nonsense.
China's position is very clear; if the U.S. truly wants to resolve the issue, it must completely eliminate all tariffs imposed on China.
The unilateral imposition of tariffs by the U.S. has triggered a trade war, disrupting normal trade rhythms and causing businesses to struggle.
As long as this thorn of tariffs is not completely uprooted, neither side can expect to be at ease.
For China, canceling all additional tariffs is a prerequisite for starting genuine negotiations; without this prerequisite, any negotiation loses practical significance.
If all tariff barriers are not removed at the negotiation table, the tug-of-war will only leave the problem hanging indefinitely.
If the U.S. does not present this sincerity, the bilateral trade relationship torn apart by the trade war will never recover its vitality.
China has long seen through the facade at the U.S. negotiation table and simply does not engage with the Americans.
The tariff war indeed harms one thousand while damaging oneself eight hundred, but China holds the trump card and is confident.
Let Washington stir things up as it pleases; those standing at the foot of the Great Wall have never been frightened.
The deeper meaning behind China’s stance.
China has made it clear that even if Trump signals tax cuts, their stance remains as solid as a rock.
This attitude conveys a clear message: China will not change its established policy due to the U.S.’s seemingly friendly gestures; the determination to defend core interests will never be compromised.
The U.S. has consistently maintained its initial motive; from the day it brandished the tariff stick, the strategic plot to suppress China’s development has been ingrained.
Now, throwing out the tax cut plan is merely a sign that he has found that extreme pressure is hurting himself, trying to use this feigned maneuver as a bargaining chip to gain more negotiation advantages; the underlying logic of suppression has never changed.
When Trump launched the tariff war, he brazenly raised the tax rate on China to a dangerously high level, completely breaking the safety threshold for economic and trade exchanges between the two countries.
This is like a business partner suddenly tearing up the agreement and unilaterally increasing the stakes, creating obstacles for cooperation.
Now, calling for tariff adjustments and putting on a facade of easing actually stems from having overexerted themselves earlier, resulting in self-inflicted damage, forcing them to retract some of the fabricated negotiating chips.
It has been proven that China has long seen through this calculation; the tricks played by the White House cannot stir any waves at the negotiation table.
The true intentions behind Trump’s tax cuts are in doubt.
What is Trump really trying to achieve with his tax cut calculations? Perhaps he wants to use the tax cut action as a bargaining chip to negotiate for more opportunities at the table.
The trade war that raised tariffs did not benefit the U.S., and now they are throwing out the bait of tax cuts to try to bring China back to the negotiating table.
What’s more concerning is that he may use tax cuts to threaten China into compromise. Trump has explicitly stated that tax cuts will only be considered after the agreement is signed, making it clear that he wants China to agree to conditions before discussing tax cuts.
China does not buy it at all and directly rejects U.S. coercion. Trade negotiations require equality, reciprocity, and respect; if the U.S. always uses threats to force China to concede, negotiations will naturally get nowhere.
In the face of such pressure tactics from the U.S., China’s attitude is very clear: whether the tax cuts are a sincere attempt at easing tensions or a disingenuous threat, trying to use tax cuts as a bargaining chip for compromise is fundamentally unworkable.
China has long seen through this tactic; the bottom line of interests is there, and they will neither retreat for immediate benefits nor allow others to grasp their weaknesses.
Trump's so-called tax cut measures have not restored the trust gap between China and the U.S.
He initiated the increase of tariffs and then turned to tax cuts; this policy flip-flopping exposes the randomness of decision-making, and such back-and-forth operations have already ruined his credibility.
China cannot easily trust the U.S. sincerity due to this wavering stance. The fundamental goal of the U.S. in launching the trade war is to suppress China. Even partial tax cuts cannot hide the overall intention of containment; trust cannot be rebuilt with mere empty words.
Trump is calculating to use tax cuts as a bargaining chip to negotiate with China, and his calculations are quite shrewd.
The reality is quite embarrassing; despite multiple calls for tax cuts, the basic communication channels with China have not even been established. The facts clearly show that China is not falling for this trick.
The negotiation chips he envisions have turned into a one-sided fantasy, and China’s actions have completely deviated from the preset trajectory, leading the tariff confrontation into a dead end, with no glimmer of hope for a breakthrough in the short term.
It is a delusion to expect such political performances to end the trade war; a real warming of U.S.-China economic and trade relations still requires time.
Enlightenment.
How the tariff war will be fought in the future depends entirely on Trump’s next moves.
If Trump can negotiate to cut tariffs on China down to 35%, China may throw out goodwill to simultaneously cancel tariffs, bringing the dialogue back on track and naturally cooling the trade war.
Conversely, Trump continues to fantasize about dominating the negotiations and forcing China to swallow unilateral conditions; lacking sincerity for equal dialogue, China will absolutely stand firm.
Has China ever backed down in this trade war? Not a step back on core interests, and never soft when it's time to draw swords.