The Tariff Man gone bonkers
Huang Jiyuan
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Editor's note: Huang Jiyuan is an opinion editor with CGTN Digital. The article reflects the author's opinions, and not necessarily the views of CGTN.

It is just absurdity now.

On August 2 (U.S. time August 1), U.S. President Donald Trump announced an additional 10 percent tariff on the remaining 300 billion dollars of Chinese imports starting September 1. For whatever logic he had to justify such an act, the only thing that seems comprehensible in all this madness is people's reaction to it. Within hours, the Dow has down nearly 500 points. Major companies like Fedex and Apple are seeing their share prices drop and value evaporate. And lawmakers are publicly calling out Trump on the harm that his acts will do.

The officials Trump sent to Shanghai for the negotiations – his Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer – have reported to him that the talks have been constructive, and that next round of negotiations is set for September. And yet, he de-constructed the "constructive talks" by slapping another round of tariffs.

U.S. Trade Representative Robert Lighthizer (L), Chinese Vice Premier Liu He(C), and U.S. Treasury Secretary Steven Mnuchin (R) at the Xijiao Conference Centre in Shanghai, July 31, 2019. /VCG Photo

U.S. Trade Representative Robert Lighthizer (L), Chinese Vice Premier Liu He(C), and U.S. Treasury Secretary Steven Mnuchin (R) at the Xijiao Conference Centre in Shanghai, July 31, 2019. /VCG Photo

This might have just put that negotiation in danger. No man would negotiate in good faith with a gun pointing at his head, and no country would succumb to the pressure from a regime that clearly has a President who likes to shoot his own feet and a bunch of officials that twaddle at the President’s whim. "Until such time as there’s a deal, we’ll be taxing them" is a clear sign that this President cares nothing about "constructive talks." The only way he knows how to conduct international negotiations, is through extreme pressure.

One can only say: "nice try." He has picked absolutely the wrong target to impose the extreme pressure. Doing this to China is just useless. His argument is that, by taxing China, the U.S. is getting a lot of money back and that it hurts the Chinese economy so that China would want to make a deal. However, so far, China is not the one taking the brunt of his actions. After all, it is U.S.' Apple that will see its price increases and revenue drops; it is the U.S.' families that will see parents complaining about the increased price on, well, almost everything; and it is the U.S.' lawmakers who will see business lobbyists storming their offices demanding an end to this absurdity.

China, on the other hand, has proven its capability of keeping still through the storm. Despite the U.S.' sanctions, China's economic growth has landed within the predicted range. The growing Chinese middle class is still consuming at record amount. The growing domestic demand is making China less dependent on exports. And, all in all, China, even currently at its lowest economic growth rate, is still charging ahead at mid-6 percent. The U.S., even with all of its monetary incentives and fiscal adjustments, is struggling to maintain at a 3-percentage level.

Shanghai, one of the most modernized and prosperous cities in China, was chosen as the place for this round of China-U.S. trade talks. /VCG Photo

Shanghai, one of the most modernized and prosperous cities in China, was chosen as the place for this round of China-U.S. trade talks. /VCG Photo

Is it that Trump just can't see how absurd his action is? Well, it seems like it. He has hoped that he could use the same method to run a country as he had done in business. The reality kept telling him that's not the case. But clearly, he is not really listening. Tariff is a way for negotiation. It is not the only way. It might work on some country whose lifeline depends on its export to the U.S.. Using the same method against economic behemoth like China is pointless. And once the tariffs take effect and everyone in America starts complaining, it wouldn't be China that Trump needs to be tweeting about. It would be the angry Americans and the replacement they are going to send into 1600 Pennsylvania Avenue.

Keeping this absurdity up might just let the world see one thing about Trump's thinking become reality: if the negotiations go on long enough, China might be indeed dealing with a different occupant of the White House come 2021.

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