The United States has not yet started negotiations with China, and Trump has issued new threats, demanding that China and the United States reach a trade agreement, otherwise it will impose three-digit tariffs on China.
Not long after Trump changed his attitude towards China, he changed his mind again. While saying that he wanted to talk to China, he threatened to raise tariffs if he failed. According to US media reports, on October 20, local time, Trump met with Australian Prime Minister Albanese at the White House. During the meeting, Trump mentioned China again and was very "confident" that he would reach an agreement with China.
Trump claimed that the U.S. would reach a “pretty good” deal with China.He acted quite optimistic, then he added that because if the U.S. failed to reach an agreement, the U.S. would impose tariffs of 157 percent on China.
Though this was said during a meeting with the Australian prime minister, it was also a naked threat to China. In an interview with Fox News some time ago, Trump also said that high tariff blackmail against China is unsustainable. Trump himself knows that it is impossible to threaten China like this all the time, so why say it now?
During the meeting with Albanese, Trump signed an agreement to cooperate with Australia to develop rare earths, with a total value of $8.5 billion. According to Trump's own words, there will be too many rare earths in the United States to be used up in the future. The mention of China on such an occasion is obviously to show the tough side of the United States towards China.
Secondly, before negotiations, the United States also needs some political opinion. As far as the United States is currently being countered by China, it is relatively serious, the inability to obtain rare earths will directly harm its military industry. But it is not enough in the short term to affect the overall military capacity.The same goes for the high-tech industry. But when it comes to other areas, such as agricultural products, it is different. Those who follow the progress of the Sino-US confrontation know that slow sales of soybeans are a big headache for Trump.。
The US economy itself is in an inflationary crisis.This year, Trump shouted many times, demanding that the Fed cut interest rates.Chairman of the Federal Reserve, Powell, was worried about inflation and refused to drop interest rates late. However, the U.S. economic growth is slow, the situation is not optimistic, and by September, the news of interest rate cuts finally came.
In his speech to cut interest rates, Powell emphasized that the Federal Reserve cut interest rates this time was not due to pressure from Trump, but that the U.S. economy is really poor now and the Federal Reserve has to come out and do something.。Under Trump's tariff policy, American people and businesses actually bear the cost of tariffs, resulting in the actual slow growth of the U.S. economy.
After research and investigation, some scholars said that the current economic growth in the United States is concentrated in the fields of AI and digital technology, while the growth of the real economy, including manufacturing and service industries, is quite slow. It can even be said that U.S. economic growth is likely to stagnate without investment in digital technology and storage.
This, of course, has to do with tariffs, as well as with other Trump policies.For example, Trump expelled foreign immigrants and took a tough policy on immigrants, regardless of whether or not legal immigrants. This portion of people actually took on a large part of the U.S. underlying work, which also leads to U.S. employment actually also a problem.
These, coupled with the costs of tariffs, the U.S. economy naturally grew slow and there was an inflationary risk, forcing the Federal Reserve to cut interest rates, but Trump would still cut interest rates as one of his achievements and continue to fight a trade war with other countries, especially China.
Now that China and the United States are about to start a new round of negotiations, the United States naturally wants to build momentum in public opinion to show that the United States is invincible, so that their voters and supporters can not pay too much attention to the economy, but pay attention to the benefits that the United States can get. However, protests against Trump have recently erupted in many places in the United States. This may also allow Trump to choose a tougher approach to face China, but negotiations rely on intimidation will not work. Negotiations still depend on the chips of both sides.