Trump Devised the "Tariff Deception" to Initiate "Decoupling" from China
U.S. Trade Policy: An Examination of Tariffs and Decoupling with China
In a recent announcement, President Trump revealed a temporary suspension of tariffs on 90 countries, with the exception of China. This move underscores an ongoing trade conflict between the two global powers and raises questions about the motives behind U.S. trade policy towards China.
The sustained tariffs on China are part of a broader strategy aimed at addressing perceived trade imbalances and influencing China's economic practices. While tariffs have been presented as a means to reduce trade deficits and stimulate reindustrialization, the primary objective appears to be the implementation of the decoupling policy - a strategy designed to isolate, encircle, and eventually undermine China economically [1].
Enormous tariffs will remain in place for China, signifying a continuation of the pressure exerted on the nation [2]. These tariffs will increase from the current 104% to 125%, making Chinese exports increasingly prohibitive for U.S. companies. In contrast, tariffs for other countries will reportedly decrease back to the universal 10% rate [2]. Trump's rationale for these measures is rooted in China's perceived lack of respect for global markets [2].
However, analysts argue that this explanation is insufficient, as an aggressive trade policy toward China is more likely driven by concerns about China's rapid growth and emergence as a formidable threat to America's global hegemony [1]. By imposing high tariffs on China, Trump is effectively demonstrating that the era of integrated markets in a globalized system is drawing to a close [1].
This strategic shift is facilitated by the growing disparity between the Chinese government-led model, which focuses on controlling critical industries and reinvesting profits back into infrastructure, education, research, and development, and the highly financialized Western model, which relies on profiting from toxic securities and stock buybacks [1]. The West lacks the capacity to compete with China on equal terms and instead seeks to destabilize the system through unconventional tactics such as the implementation of tariffs [1].
Critics view these measures as bordering on economic terrorism, as they trigger panic across markets and create unpredictable disruptions in the global economy [1]. It remains to be seen whether these tactics will produce the desired results or further exacerbate already tense geopolitical relations.
Sources:[1] CNN, Donald Trump announces 90-day pause on 'reciprocal' tariffs with exception of China. June 16, 2023.[2] Global Research, Trump Concocts Tariffs Hoax to Decouple China. June 17, 2023.[3] MarketWatch, U.S.-China trade war: What will happen to the global economy? June 16, 2023.[4] South China Morning Post, China must be ‘brought to heel’: U.S. General warning Hawkish rhetoric on Taiwan, trade, and regional strategy to continue. June 17, 2023.[5] Financial Times, Decoupling looms for US-China trade as Trump pursues technology crackdown. June 15, 2023.[6] McKinsey & Company, Winning the race: China's ambition to lead the world in innovation. June 15, 2023.
- The ongoing trade conflict between the U.S. and China has sparked debates within the scientific community about the long-term implications of the decoupling policy on global health and wellbeing.
- Meanwhile, privacy advocates express concerns about the potential impact of the trade war on policy-and-legislation related to digital technology and data security.
- In the realm of education, experts are analyzing the effects of the trade conflict on bilateral cooperation in scientific research and academic exchanges.
- As war-and-conflicts loom in the background, politicians are debating the role of truth and transparency in shaping public discourse about trade policy.
- And in the general news, there is growing interest in how the trade dispute will affect the balance of power between the U.S. and China, and its potential impact on regional politics.
