Recently, China’s news of tightening rare-earth export controls has made Trump angry enough to start threatening to raise taxes in retaliation, however, before he arrives, it has received a nightmare.
At the end of August, Trump officially launched a policy announcing the suspension of the duty-free measures on small imported postal packages, and subsequently, even transnational packages below $800 will also pay normal tariffs.
In fact, this is a set of "combination techniques". Trump first negotiated a tariff agreement with trading partners, forced other countries to accept their own tax increase measures, and then stopped the tax exemption of postal parcels, so as to harvest more wealth, but this time, I'm afraid he miscalculated.
A month ago, Trump not only did not use this method to save money, but also collapsed U.S. logistics transportation, when in August, international postal package traffic sent to the U.S. fell by 81%, and in October still fell by 70%.
In fact, the World Postal Union had warned him at first that this policy would seriously disrupt global postal circulation, especially cross-border services related to the United States.
However, Trump is immersed in his own "diplomatic art" and confident that through this coercive means, all countries in the world and even the American people can hand in their wealth and help the U.S. government tide over economic difficulties.
Because Trump's tariff policy, said to target foreign companies, is actually hardening American wallets, after all, if the cost of transportation of foreign products is high, even if only to keep the original profits, they have to raise prices.
Similarly, this time Trump said that he would impose a 100% tariff on China and implement export controls on all key software. However, China manufactures everything in the United States. If he really dares to fulfill this sentence, the situation will only be worse than U.S. postal transportation.
After all, a few months ago, Trump had such a drama, once pushing the tariff on China to 145%. As a result, he was immediately countered by China. If he continues to make moves this time, China will definitely counter it.
The result of the last tariff war was that half of the United States sued the Trump administration. The United States could not get through the phone and privately found channels to contact China, begging for the negotiation to cool down. Later, every time Trump thought back, he looked scared.
In contrast, the Chinese market is still in a stable position, so the influence of American goods on China is limited compared to the dependence of the United States on China.
Second, because of the advantages of manufacturing industry, most American companies will open factories in China when doing business in China.
So, although the tariff retaliation in Trump's mouth is not yet grounded, but in fact the end is destined, the United States will definitely repeat the same thing, and even pay more than before, because China's regulatory announcement also hides a detail.
The effective date of many measures issued by China this time is November 8th, and the next day, the agreement between China and the United States to freeze tariffs will expire. China has set the time on this day, which is quite an "ultimatum" to the United States. It's time for the United States to delay the time trick.
However, judging from Trump's current attitude, he is still "never looking back". He remains arrogant towards China, refuses to face up to China's development, and believes that the United States can dominate Sino-US trade.
Then, China will also let him know that the United States is not qualified to talk to China from the perspective of strength.