More recently, trump has put two words in place, one imposing 100 per cent tariff on all chinese cars and the other threatening china to add another 50 per cent to its business with iran. After these two slaps, the united states' own think tanks were the first to panic, as were the media and the federal reserve, and even warned that this would most likely set off the black swan incident。
The chinese car was shut down and trump was killed
This time, the trump initiative against chinese cars was extremely harsh, imposing 100 per cent additional tariffs, plus a pre-existing 2. 5 per cent base tax and a 25 per cent car-specific tax, bringing the cumulative rate to 137 per cent. The significance of this is that the price of the 30,000-dollar chinese electric vehicle arrived in the united states and soared to more than $70,000. In the united states, where the same money has been spent to purchase a porsche cay, who will buy a chinese-made car
This high tax rate has caused chinese cars to lose their price advantage in the united states market, which is largely impossible to sell. The government of trump was the first to introduce a 25 per cent tariff for reasons of national security and employment, and biden later raised the tax rate to 100 per cent in order to bring together workers from the states whose positions were uncertain. The current trump has become even more intense, directly attempting to block cars produced in china completely outside the country。
Interference with iraq's policy, breaking the lines between the two countries. Line
Indeed, it is trump who has interfered in china’s policy against iran, effectively destroying the basis for the resumption of relations between china and the united states. He made a clear threat that, as long as china supplied iran with military equipment or engaged in sensitive trade, it would impose an additional 50 per cent tariff. This is no longer a question of the scope of trade, but of interfering in china’s diplomatic decision-making power as a sovereign nation。
China has its own right to trade with whom, and trump uses customs duties as a stick to threaten it, which is essentially a gross interference in china's internal affairs. In the consensus reached at the busan meeting, the two sides intended to normalize relations, yet trump, while demanding that china increase its imports of soybeans to the united states, shut the door to chinese cars, has completely deviated from the consensus。
There's been a panic inside the united states
This chain of operations carried out by trump was carried out first and foremost by its own people. The governor of the federal reserve bank of chicago, goulsby, has publicly warned that us inflation would be completely out of control if china countered the sharp rise in oil prices and weak labor markets. He revealed that the trump tariff initiative was adding economic uncertainty and did not contribute to stable development。
According to congress hill, the us may be experiencing the worst economic recession in history, and more than half of americans cannot afford to spend $1,000 in contingency. The leading economist, larry summers, has also spoken out that the united states is relapsing the old path of inflation in the 1970s, and that a large-scale financial crisis is bound to come if the trumps so persist。
Chinese cars aren't afraid
In this way, the united states has sealed off chinese cars, but the data have long been indicative. When chinese cars entered the european market, they did not crowd out their home brands, but instead stimulated demand in the market and promoted technological improvements throughout the industry. Europeans have shown by their deeds that competition is not bad, and that it is not advisable to close doors from the main car。
Battery technology is the core competitiveness of chinese automobile companies, and it has been built up. At a time when many chinese automobile companies have gone to europe to build local production, technology proliferation will not stagnate under united states tariffs. The global mainstream automobile giants, toyota and mercedes have all grown up as a result of open competition, and tariffs can be blocked in the short term, yet they simply cannot sustain competitiveness in the long run。
We don't play customs games
In the context of the tariff threat posed by united states president trump, the response of the foreign ministry of china was only seven words: “there is no winner in the customs war”. These words are not numerous, yet the attitude expressed is extremely clear. If we compare the current situation with the period of the trade war that erupted in 2018, there is no doubt that china has more leverage today. As the country with the most complete industrial chain on a global scale, china's advantages in the manufacturing sector are beyond the reach of any other country。
China has led the world in the new energy and automobile industry, with opportunities everywhere in the middle east, europe and south-east asia, even if it does not enter the united states market. China held a considerable amount of united states debt in its hands and had a certain weight in speaking in the context of global trade. The united states think tank peterson institute for international economics had long predicted that economic growth in the united states would stagnate in 2025, with the possibility of a formal recession by 2026. Instead of solving the problems of inflation and debt in their own countries, trump is raising taxes and building enemies around the world, which wall street considers to be self-destructive。
High tariffs do not hurt china
After 100% tariff landings, the first to be adversely affected is the average consumer in the united states, where the price of imported cars is bound to rise, and the price of used cars, which are already expensive on the united states market, are more difficult to bear today, while on the chinese side, tesla, ford, and general still have regular access to the chinese market, while shanghai’s super plant helped litezla to turn the tide。
Trump tried to use tariffs to block chinese cars from entering the united states, but it was unable to stop the effects of technology and the laws inherent in the market itself. If the chinese car does not enter the united states market, it will be sold elsewhere, as in europe, south-east asia and the middle east. Instead, ordinary americans had to pay more to buy cars, so inflation could not be suppressed and life was becoming more difficult. The fed, the media, and economists are crying out for danger, but trump is still causing trouble。
