Trump recently suddenly said that he would impose another 100% tariff on China's exports to the United States.
This is not done in vain, it has to be done before the consequences.
Before the U.S. targeted Chinese ships as much as money, as long as they are Chinese-made or Chinese-owned cargo ships, once to the U.S. port must pay the port use fee, the standard is $ 50 per net tonne.
A 100,000-ton cargo ship costs $5 million at a time, which has never been so expensive before.
China made it clear early on that if the United States dares to accept this money, it will definitely retaliate.
The U.S. did not listen to it, and it was unacceptable.
China was not polite, and directly launched a counterattack, not only a reciprocal response, but also an extra code.
For example, ships with more than 25% equity in the United States have to pay RMB per net ton of 400 yuan when they arrive at Chinese ports, which is higher than that charged by the United States, and it will have to rise every year in the next three years.
Because the United States now basically does not build ships on its own, but invested a lot of money in the international fleet, based on equity can hold a lot of ships, so can accurately cover the United States related ships.
In addition to ships, China has also tightened export controls in the field of rare earths, especially heavy rare earth metals.
In addition, the "long arm jurisdiction" of the United States has been learned, the export of rare earth must be licensed, if there are corporate violations, not only to punish this enterprise, but also to punish the company with its products.
For example, preventing illegal enterprises from selling things to China, or preventing them from doing business in China, this trick was commonly used in the United States before, but now it is also used in China.
In the face of this, Trump suddenly said that if China continued to do so, it would add 100% tariffs.
Now the United States has charged 20 percent to 50 percent tariffs on Chinese products, and after the overlap the total tariff rate will be 130 percent to 150 percent, it said on November 1.
The two purposes of taxation in the United States are actually to draw water from a bamboo basket
Why did the United States do this? The first is to make a little more money to supplement the finance, and the second is to crush the Chinese shipbuilding industry and let it flow back to the United States.
Both of these goals are enough to be achieved.
First look at making money.
100,000 tons of ships to 5 million, looking at the amount is large, in the value of goods is also 4% of the value.
The United States has now levied tariffs of 20%-50% on China products. Adding this 4% will not really help the economy.
The United States collects $300 billion in tariffs annually from the world, compared with its $37 trillion in national debt, not even a seed.
Trump is known for his love of money, but this amount of money is too little to relieve the pressure on debt.
He originally wanted to think that the money would help, but later found that it was not even a drop in the bucket. He just thought he could earn more, so he did it.
Moreover, bringing the shipbuilding industry back to the United States is more unrealistic.
China's shipbuilding industry now accounts for more than half of the world's tonnage. Its main rivals are South Korea and Japan, which have nothing to do with the United States.
If Trump really charges Chinese ships, some shipowners may temporarily refuse to order Chinese ships, and some shipping companies may also avoid cooperation with China, such as not allowing ships to hang Chinese flags, not bringing Chinese capital, in the short term will indeed bring a point shock to China's shipbuilding and shipping industry.
But bringing the shipbuilding industry back to the United States is not possible.
Shipbuilding is really hard work, I have previously visited the Jiangnan shipyard, where there are tens of thousands of workers, most of them from central-western provinces such as Guizhou, even Shanghai local, there are not many people willing to do it.
Take welders for example. It is so hot in Shanghai in summer that they have to work in the cabin. The temperature inside the cabin can reach 60-70 degrees Celsius.
Factory how to reduce the heat, the working environment is still hot.
Where did the United States find so many workers willing to do this work?The era of reliance on high-intensity physical strength in the United States has long passed, so this idea is basically a fantasy.
In this way, the policy of the United States is to lose selfishness and ultimately nothing to save.
And if it were to add 130%-150% tariffs, China-U.S. trade would almost stop.
This is not good for U.S. consumers, and it costs more money to buy. It is a nightmare for American companies that trade with China.
U.S. retailers, manufacturing enterprises will not want to, before there was Walmart, Tagit, these major retail giants joined up to the White House to write a letter against tax increases, saying it would increase the cost of living of millions of U.S. households, and companies would have to cut jobs.
Trump does not change his mouth unexpectedly, China-US at the end of the month or have a chance to talk
It was not surprising that Trump softened the next day after making harsh remarks about tax increases.
Americans nicknamed Trump "Taco", which means "Trump, always get cold feet".
With this temper, he first used harsh words to build momentum, Later, if someone reminded him,"Mr. President, doing this may have XX consequences, and I'm afraid it won't work," he would immediately withdraw his order.
Especially when encountering opponents with a tough attitude like China, he is more likely to retreat.
The same is true this time. The consequences of the tax increase are too serious, and there must be a lot of opposition in the United States. As soon as he heard this, he quickly changed his words and said,"In fact, I still want to negotiate with China and hope to meet at the end of the month."
It can be seen that his tax increase statement was on a whim, and he didn't even count as a formal decision, just casually.
In the next 20 days, China and the United States estimate that there will be a lot of contacts, and maybe even sit down and talk.
And at the end of the month, South Korea is to host the APEC meeting, the capital of the Pacific coastal countries will go, and the head of the central-USD is likely to meet there.
Several times the easing of China-U.S. relations has been discussed at such an international conference, and this may also be an opportunity.
In fact, China's counter-measures attitude is so firm that it not only responds in a reciprocal manner, but also takes the initiative to increase the number. The core is that China's industrial strength is now much stronger than before and it has more "cards" in its hands.
There are still many measures in China's "counter-measure toolbox" that have not been taken out. On the other hand, Trump has basically played all the cards he can play in his hand.
Earlier he said “youhavenocars” when he met Zelensky at the White House, and now it’s China’s turn to tell him.
So you don't have to be confused by Trump's impulsive statement.
Sino-US relations are generally moving in a stable direction, which is a good thing for both countries and the world.
After all, no one can take advantage of a real trade war. In the end, ordinary people and enterprises will be injured.
In the future, the two sides must also find mutually acceptable solutions through negotiations, which is the right way to solve the problem.