(Source: "China Economic Times" 2025-04-22)
Focus on “Reciprocal Tariffs” Think Tank Expert Talk (6)
[Wang Zhimin Huang Linlin]
After the new U.S. government came to power, it first imposed 10% tariffs on Chinese goods twice, and then continued to increase the tariffs after my country counterattacked. Then it added 50% tariffs from 34% "reciprocal tariffs" to 125% tariffs. The total tax rate reached a crazy level of 145%. Even the cumulative tariffs of various categories on individual Chinese goods exported to the United States have reached 245%. Since then, a 100% tariff has been imposed on STS cranes made in China or containing Chinese components.
China has shown a clear attitude towards this and has taken countermeasures. Starting from April 12, 2025, the additional tariff rate will be increased to 125% on all imported goods originating in the United States. In view of this tariff level, there is no possibility of market acceptance of U.S. goods exported to China. If the United States continues to impose additional tariffs on Chinese goods exported to the United States, China will ignore it.
Extreme pressure was countered: "comprehensive attack" to "focused attack"
U.S. President Trump vigorously promotes the "America First" policy, taking "tariffs to make America great again" as his creed, saying that "tariffs are the most beautiful words in the dictionary", which can not only protect American industries, but also increase fiscal revenue. Shortly after taking office, the Trump administration imposed high tariffs on Mexico, Canada and China on the grounds that fentanyl smuggling and illegal immigration threatened U.S. national security. At the same time, restrictive measures have also been taken on my country's maritime, logistics and shipbuilding industries. The Chinese government launched counterattacks on February 4 and March 4 respectively. Both times, it imposed additional tariffs of 10% to 15% on some imported goods originating in the United States, and added more than ten American companies to the list of unreliable entities. On April 2, U.S. President Trump announced that he would set a 10% "minimum baseline tariff" on trading partners, impose a 34% "reciprocal tariff" on China, and impose an additional 10% to 49% "reciprocal tariff" on other economies, launching a "comprehensive attack" on all trading partners almost indiscriminately. Trump also called April 2 the "Liberation Day" of the United States.
China has always dealt with international issues based on the merits of the matter itself, adhered to fairness and justice, resolutely safeguarded national sovereignty, security, and development interests, and never succumbed to any pressure or threats. Whether it is using the so-called fentanyl and other issues as an excuse to impose additional tariffs on our country, or the so-called "reciprocal tariffs", our country will resolutely fight back, making it impossible for the United States to succeed in its tariff blackmail. The implementation of the Trump administration's "reciprocal tariffs" met with global opposition and caused shocks to the global market. At the same time, it also backfired on the United States itself. The U.S. stock market continued to plummet. Especially after China quickly "retaliated", the U.S. stock market fell in a "free fall".
Pressure, threats and blackmail are not the correct ways to deal with China. When China decided to impose a 34% tariff on all imported goods originating in the United States on the basis of the current applicable tariff rate as a precise countermeasure from 12:01 on April 10, it also implemented export control measures on seven categories of medium and heavy rare earth-related items, including samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. On April 10, US President Trump suddenly announced that he would suspend "reciprocal tariffs" on 75 countries for 90 days. China was the only one excluded from the "exemption list." The tariffs on China soared from 104% to 125%, and the total tariff rate on China reached 145%. The U.S. government has shifted from a "comprehensive attack" of undifferentiated "reciprocal tariffs" to a "focused attack" targeting China alone. This reflects the lack of confidence in the tariff bullying launched by the U.S. government, especially as the U.S. dollar fell further and the U.S. bond market saw a sharp sell-off.
China will stay with you to the end: maintain strategic focus and plan to break the situation
China’s countermeasures in the face of U.S. tariff bullying are not only a response to safeguard its legitimate rights and interests, but also to safeguard international rules and the common interests of all countries in the world. There is no winner in the "w88 war", there is no way out for protectionism, and tariffs cannot solve the United States' own problems. The United States imposed tariffs on the pretext of reducing w88 in goods and goods, but selectively ignored the large surplus in services w88 with China. When China announced that it would reduce imports of American films, the stock prices of many American film companies plummeted. China has sufficient economic strength and strong strategic determination to fight the U.S. tariff bullying to the end.
First, my country’s ultra-large market advantage has strong strength to deal with external risks. China has the world's largest middle-income group, which contains huge investment and consumption potential. "China's economy is a sea, not a small pond." China has regarded expanding domestic demand as a strategic basis for economic development. In March 2025, the General Office of the CPC Central Committee and the General Office of the State Council issued the "Special Action Plan to Boost Consumption" to continuously strengthen the policy of expanding domestic demand and continue to release the endogenous energy of consumption. 1.4 billion Chinese people have shifted from survival consumption to development consumption. The expanding demand for new consumption such as green digital and services such as elderly care and childcare has become an important driving force for consumption growth. Although the U.S.'s imposition of high tariffs on China will have a certain impact on China's w88, it will never shake the foundation of China's economic development, and it will also face the opportunity of losing China's ultra-large market.
Second, building a new development pattern with the domestic cycle as the main body and domestic and international dual cycles reinforcing each other has accumulated strong economic resilience. In May 2020, the central government proposed "gradually forming a new development pattern with the domestic cycle as the main body and the domestic and international dual cycles reinforcing each other." After that, the Central Economic Work Conference made systematic arrangements for expanding domestic demand for five consecutive years and proposed new measures to cultivate the "active driving force of domestic demand", giving full play to the institutional advantages. Accelerate the construction of a unified national market and promote the transformation of "big market" into "strong market". After the United States’ bullying behavior of increasing tariffs, JD.com, Alibaba’s Hema Fresh, Meituan’s Xiaoxiang Supermarket, Yonghui Supermarket, etc. have offered to help foreign w88 companies explore the domestic market. The comparative advantage of my country's large economy, which is deep and broad, is being transformed into a competitive advantage.
Third, high-level opening up promotes high-quality economic development and promotes economic transformation and upgrading. The trend of high-end, intelligent, and green economic development has promoted the supply chain and value chain to rise upward, and the domestic economic structure has been adjusted to respond to changes in the external environment. The output value of my country's manufacturing industry is already that of the United States, Germany, Japan, and India combined. The "New Three" represented by new energy vehicles, Deep? Seek, high-end chip manufacturing and 6G technology have achieved breakthroughs. my country's new renewable energy power generation and new energy vehicle production and sales account for 60% of the global share respectively. These are all driving the continuous improvement and upgrading of China's foreign w88. my country has signed 23 free w88 agreements with 30 countries and regions and implemented zero tariffs for the least developed countries that have diplomatic relations with my country, contributing to the construction of an open world economy.
Fourth, the continuous optimization of the w88 structure and the diversification of partners have greatly enhanced the competitiveness of foreign w88. In 2024, the United States will import 86% of game consoles, 79% of computer monitors, 76% of toys, 73% of smartphones, 70% of lithium batteries, and 66% of laptops from China. China has ranked first in the world in automobile exports for two consecutive years, and has ranked first in the world in production and sales of new energy vehicles for ten consecutive years. The United States dropped from China's largest trading partner in 2017 to its third largest trading partner. In 2018, my country's exports to the United States accounted for approximately 21.8% of foreign exports and 3.9% of GDP. In 2024, my country's exports to the United States accounted for approximately 14.7% of foreign exports and 2.72% of GDP. The w88 volume between my country and the countries co-building the “Belt and Road” continues to increase. my country also controls 60% of the world's rare earth reserves and 90% of its refining capacity. Rare earths are important resources for guidance systems, radar and sonar equipment.
There are no winners in the “w88 war”: win-win cooperation is the way for China and the United States to get along
The United States engages in w88 bullying in the name of "reciprocal tariffs", ignores the differences in the development stages of different economies, and deprives developing economies of their right to development. "Reciprocal tariffs" disrupt the global supply chain and lead to chaos in the international w88 order. They not only increase the price of global consumer goods and lead to a global economic recession, but may also trigger a humanitarian crisis in developing countries, especially the least developed countries. The World w88 Organization estimates that the w88 situation between China and the United States may lead to an 80% drop in merchandise w88 between the two countries; if the global economy divides into the two camps of China and the United States, it will directly lead to a long-term contraction of global real GDP by nearly 7%. For the United States, the imposition of additional tariffs has led to rising prices, increased burdens on consumers, increased corporate costs, and compressed profit margins. U.S. agricultural products have also encountered countermeasures, resulting in a decline in farmers' income.
There is a clear vertical division of labor between China and the United States in the economy, and their economies are highly complementary. Apple cooperates with Chinese suppliers to create jobs in China and keep Apple products competitive. The consumption upgrading needs and industrial transformation potential of China's more than 1.4 billion people will provide strong impetus for world economic growth. China and the United States are important w88 and investment partners, and bilateral economic and w88 cooperation benefits both sides. In the 46 years since the establishment of diplomatic relations between China and the United States, bilateral w88 volume has increased significantly, reaching US$688.3 billion in 2024, 275 times that of when diplomatic relations were established, and more than eight times that of 2001, when China joined the WTO. The United States is also an important investment destination for China. Data from the Chinese Ministry of Commerce show that as of 2023, China’s direct investment stock in the United States is approximately US$83.69 billion, covering 18 national economic industry categories. A total of more than 5,100 overseas companies have been established in the United States, employing more than 85,000 foreign employees. As of December 2024, China also holds more than $750 billion in U.S. Treasury bonds, making it the second largest foreign holder of U.S. Treasury bonds.
China has always stood on the right side of history and the progress of human civilization. Although there are structural conflicts between China and the United States, the earth is big enough to accommodate both countries. China and the United States should adhere to the principles of mutual respect, peaceful coexistence, and win-win cooperation and properly resolve differences through dialogue and consultation. Trump once said that "China and the United States can solve all the problems in the world by joining forces." While imposing high tariffs on China, he also expressed his desire for dialogue between China and the United States, demonstrating his strategic versatility. On the evening of April 11, the U.S. Customs and Border Protection issued an announcement stating that products such as smartphones, routers, and some computers and notebooks will no longer be included in the 125% so-called "reciprocal tariff" previously implemented on Chinese imported goods. When China previously introduced countermeasures against the United States, it stated that "tariffs will not be reduced." No matter how the situation develops, our country must concentrate on "running its own affairs well" and respond to various uncertain factors in the external environment with the certainty of its own development.
(Wang Zhimin is a researcher at the National Institute for Opening up and Director of the Institute of Globalization and Chinese Modernization at the w88 casino; Huang Linlin is a doctoral candidate at the "Silk Road" University of International Tourism and Cultural Heritage)
Attachment: Original linkhttps://jjsb.cet.com.cn/show_538381.html
https://mp.weixin.qq.com/s/Rk_Y3jBCw9gfPIkwpBES-w
https://www.toutiao.com/article/7495799482546700809/?app=news_article&share_uid=MS4wLjABAAAA1SNggslbE7vJdNfIh5NfQWcNGaosQhR5I7EYh6G9SzA&share_did=MS4wLjA CAAAAE4HIxO78_NLp9izmZotaHs8ym7APoHzy1Q4PDG4Nhuc×tamp=1745284631&category_new=profile_article&share_token=95e081dd-dcf1-4660-b9fd-f28641a8922f&source=m_redirect
