Trump is estimated to have lost his head in anger in the past two days. After writing a small composition, he announced that tariffs on China would soon return to three digits, threatening China strongly. But a few hours later, Trump changed his tune and wanted to meet with China.
China issued new rules on rare-earth controls, and Trump was very angry.The Wall Street Journal directly that the Chinese side's controls were "unprecedented", and White House officials revealed, in a statement. This time, China did not notify the United States before the introduction of the rules, making the United States unexpected.。
Trump told the White House on October 10 that he would not consider importing Chinese goods.He subsequently posted a long post on social media platforms, expressing his incomprehension about China's sudden tightening of rare earth exports, saying that China should have no reason to do so. He even said in the long run that it may not be necessary to meet with China.。
Not long after, he announced on social platforms that he would impose an additional 100% tariff on China on November 1, also threatened China not to take new measures during this period, otherwise the date may be advanced. And the United States will restrict the export of all critical software in response to China's export restrictions on rare earth technology。
Judging from the measures that the United States is about to implement, Trump is indeed furious.Not only imposed high tariffs on China, but also directly pulled the tariff figures back to three digits, and began to implement new technical controls on China. At present, it is not known which software will be restricted, or whether all software will be included in the restricted list according to what he said in his post.
When the news came out, the U.S. stock market reacted sharply, and the stock market immediately fell.。 In April, the "reciprocal tariff" was announced. The tariffs of both sides reached triple digits, and the US stock market could evaporate hundreds of billions of dollars overnight. This also indirectly led to the outbreak of conflicts between Musk and Trump, and the two eventually broke up.
High tariffs directly cause damage to Musk's auto industry. He sells cars around the world, and China is a considerable market. High tariffs have made his industry in China increasingly difficult, and users in European countries have begun to spontaneously boycott Musk's cars, causing his sales to plummet. And there are many global companies like Musk in the United States.
These globalized companies not only purchase raw materials and goods globally, but also sell goods worldwide.Like Musk, these companies know how important the Chinese market is, and Nvidia’s Yuan Yong-young has repeatedly asked Trump to lift chip restrictions to avoid missing out on the Chinese market.
The majority of these large multinationals are still Trump's owners, although he belongs to the right is a member of the Republican Party, but there are not a few multinationals who donate money to the Republican Party, if Trump is solitary and really adds 100% tariffs, these companies will not sit down regardless of the situation.。
So after a few hours of releasing the news, Trump finally calmed down.The day Trump told reporters that he did not cancel his plans to meet with China, according to Reuters.He also said he was shocked by a series of Chinese controls and said it was reasonable to impose additional tariffs and software controls on November 1.
The reason is very good to guess is to talk to China first.。 This tariff and software restriction looks very radical, but after all, it hasn't landed yet. Trump didn't sign the executive order, and everything was just his verbal statement. On the one hand, it is to vent anger, and on the other hand, it is to create new bargaining chips in negotiations with China.
The U.S. market was severely damaged when the tariffs of the two sides were previously mentioned.The U.S. economy has not softened yet, and previous employment reports have shown that the U.S. employment growth is weak, both in industry and agriculture. At the same time, U.S. consumer power is also declining, the entire economy is in danger, and once again high tariffs, U.S. and consumers must be unbearable.。
More importantly, the United States is still inseparable from China's goodsThe current manufacturing capacity of the United States, which cannot meet the needs of the Americans, must be imported from the outside.The Trump administration, when it introduced the tariff policy, rarely gave companies a chance to breathe, nor did it implement policy aid, that is, the United States could not find a new supply chain in a short time, so that the whole of the United States could complete the replacement.
Therefore, Trump's new tariffs only began to be implemented in November, and even if it is finally time, they may continue to delay until an agreement is reached with China. Trump's first priority during this period was probably how to obtain China's rare earths. Such an important matter certainly required face-to-face talks with China, so he immediately changed his mind after calming down.