President Trump perceives himself as a skilled negotiator with advanced abilities making him superior to his counterparts. Nevertheless, in the realm of trade wars, Trump's strategy has exposed some vulnerabilities in dealing with his toughest opponent, China.
Amid a flurry of tariff actions and resulting market chaos, Trump seemed to reveal his primary target as China. While imposing tariffs on various countries, Trump paused his reciprocal tariffs for 90 days, except for China, where he raised tariffs significantly. The tariff on Chinese imports surged to 145%, a substantial increase from the initial 6% set when Trump assumed office.
This aggressive stance has put China in a confrontational position with the US, leading to retaliatory tariffs and harsh rhetoric from Chinese officials. President Xi Jinping's pride and determination in asserting China as a global power play a significant role in their resistance against Trump's pressure tactics.
Despite the turmoil, China remains reluctant to engage in a full-blown trade war but is compelled to stand firm against perceived bullying by Trump to uphold its image as a rising superpower. Xi's emphasis on self-sufficiency and economic dominance fuels China's willingness to endure the challenges posed by Trump's tariffs.
While tariffs affect both American and Chinese economies, the immediate impact is felt through a drop in US stock prices due to increased costs for businesses. This dynamic highlights the intricate nature of the trade dispute and its repercussions on global economic stability.