This photo taken on Oct 11, 2023 shows the US Capitol building in Washington, D.C., the United States. [Photo/Xinhua]
Just days into the Year of the Snake, U.S. President Donald Trump signed an executive order imposing a 10% additional tariff on imports from China. While this may seem lower than the 25% tariffs levied on Canada and Mexico, it comes on top of previous tariffs, escalating the intensity of China-U.S. trade friction. This reckless act of economic aggression is bound to throw a wrench into China-U.S. trade, harming Chinese businesses while directly driving up consumer costs in the United States and undermining the interests of the American people.
Even before officially taking office, Trump was already grandstanding about slapping tariffs on goods from China. However, Beijing saw right through this bluster and remained unruffled. It is fair exchange that makes trade a blessing for humanity. But the American government's tariff policies are nothing short of blatant economic coercion, deliberately obstructing the natural flow of commerce, distorting the global trade landscape, and ultimately serving as a shameless grab for wealth and power.
On Jan. 22, fresh from his inauguration ceremony, Trump announced that he was "considering" an additional 10% tariff on Chinese imports from Feb. 1, alongside 25% tariffs on Canadian and Mexican imports. His consideration was not about weighing options, but rather a not-so-subtle threat for others to "think twice," or face the music. True to form, both Canada and Mexico, feeling the heat, caved in. Canada announced that it would continue to implement a spending plan at the border that was worth 1.3 billion Canadian dollars, including the cost of helicopters and surveillance equipment, to beef up border security and bolster personnel to stem the flow of fentanyl into the U.S. Meanwhile, Mexico pledged to deploy 10,000 troops to the Mexico-U.S. border to help control fentanyl smuggling and illegal immigration.
But what did Canada and Mexico get in return for their capitulation? A 30-day reprieve from the tariffs. In other words, Trump's tariff hammer remains poised over Canada and Mexico. If their concessions fail to satisfy Washington in a month, the hammer will come crashing down again.
So, what's the real game behind Trump's tariff threats against China? The U.S.-China trade war has dragged on through multiple rounds, and Trump, ever the calculating businessman, knows full well that raising tariffs will inevitably drive up prices and hit ordinary Americans the hardest. Yet, blinded by his fixation on tariffs, he continues to barrel ahead undeterred. This latest tariff hike on China came with Trump's claim that he'd be speaking to China within 24 hours – a recycled stunt pulled straight from the same playbook he used on Canada and Mexico. His aim is crystal clear: to strong-arm China into making concessions, be it buying more American goods, yielding ground on issues such as the South China Sea and Taiwan, or selling off 50% of TikTok on the cheap. In short, it's a shameless profit grab – eating the food and then taking the plates, with no regard for table manners.
Trump's strong-arm tactics might have worked on Canada, Mexico and the EU, and he is clearly relishing his success. Otherwise, he wouldn't be waxing lyrical about "tariff" being "the most beautiful word in the dictionary."
However, can Trump's tariff threats achieve their goals against China? Undoubtedly, imposing additional tariffs would, to some extent, have a negative impact on China's foreign trade and help reduce the U.S. trade deficit on paper. Nevertheless, as one can't expect both ends of a sugar cane to be equally sweet, economic competition is not a zero-sum game. Trump's beggar-thy-neighbor approach is bound to backfire on the U.S. economy itself.
As the world's two largest economies, China and the U.S. are highly complementary in industrial and supply chains. The trade war has not only limited the potential for bilateral cooperation but also threatened global economic stability. Even from the U.S. perspective, relying on tariffs as a tool for trade protectionism will directly raise import costs, drive up prices and exacerbate inflationary risks. According to a BBC report, the Peterson Institute for International Economics estimated that Trump's tariff plan could cost a middle-income American household about $1,700 per year.
In fact, China and the U.S. could have engaged in more extensive cooperation in areas such as climate change, public health crises, counterterrorism and cutting-edge technologies. However, Washington's persistent Cold War mentality and ongoing suppression of China have caused setbacks to the bilateral relations, making their prospects worrisome.
In contrast, China is now better prepared to respond with confidence and composure, compared to the previous trade war. The trade friction between China and the U.S. has persisted for nearly two decades. Yet, over these years, China has neither been crushed by tariff threats nor crippled by chip restrictions. Instead, it has emerged stronger and more resilient, sustaining economic growth based on its vast economic size. The country's technological innovation, far from grounding to a halt, has given rise to innovative digital platforms like TikTok and breakthroughs in artificial intelligence represented by DeepSeek.
Ironically, all these achievements owe something to the U.S., which has acted as a "seasoned sparring partner."
The U.S. has attempted to contain China by pushing de-globalization across fields such as trade, finance and technology. Yet, this doesn't mean China is left without options. Domestically, China has a vast market with a population of 1.4 billion, and the scale of domestic demand is sufficient to provide strong support for economic growth. Its complete industrial chain further strengthens its ability to withstand any turbulence and shocks brought by international changes. Internationally, the Global South is rising, now accounting for over 40% of the world's economic output. Through multilateral initiatives such as greater BRICS cooperation, the Shanghai Cooperation Organization, and Belt and Road Initiative, China is cultivating a diversified global trade network, which will effectively counteract the negative effects of unilateral U.S. containment and suppression.
As Chinese President Xi Jinping has pointed out, decoupling and severing supply chains are not solutions, while mutually beneficial cooperation leads to shared development. Building a small yard with high fences is not the conduct befitting of a major country. Instead, openness and sharing are the pathways to human prosperity. Looking ahead, as China continues to advance its modernization, it will further expand trade and economic exchanges with the rest of the world. While pursuing its own progress, China will remain committed to building a community with a shared future for mankind, injecting greater stability into the global economy.
The journey ahead may be long and arduous, but with perseverance, we will eventually reach our destination. The right path, though rugged, will ultimately lead to triumph.
Wang Xiaohui is editor-in-chief of the China Internet Information Center.
