Countering U.S. tariff bullying, retreat never earns respect

Editor's note: Xin Ping is a Beijing-based international affairs commentator. The article reflects the author's opinions and not necessarily the views of CGTN.

On April 10, after China announced countermeasures against U.S. "reciprocal tariffs," the U.S. government declared a 90-day tariff pause for all countries and regions, with the exception of the largest Asian economy. 

A narrative has since emerged suggesting that China should not have retaliated and that countries that bent to U.S. pressure to avoid confrontation actually "won" and dodged the "tariff bullets."

But is this truly the case?

Temporary pause is not the end.

The U.S.'s pause in additional tariffs does not end the current tariff crisis. The 10 percent tariffs imposed on nearly all countries remain in place. Moreover, additional tariffs may resume if negotiations do not yield Washington's desired outcomes.

It begs the question: What exactly is a "desired outcome" for the U.S.?

Washington claims other nations have ripped off the American economy through tariffs or non-tariff barriers. Its stated goal is to pressure trading partners to lower barriers on U.S. goods to reduce the U.S.'s overall trade deficit.

However, the global community should not delude itself into believing that concessions or voluntary tariff lowering will secure reciprocal agreements with the U.S.

Take Lesotho, for example. This tiny African kingdom has been ridiculously hit with the highest "reciprocal tariffs" among all countries. As one of the world's poorest countries, whose GDP in 2024 was around $2 billion, with a quarter of its population unemployed, Lesotho's economy relies heavily on exports to the U.S. In 2024, U.S.-Lesotho bilateral trade was about $240.1 million, of which nearly 75 percent is Lesotho's clothing exports. To meet the U.S. objective of wiping out bilateral trade deficits, this country, which U.S. President Donald Trump said "nobody has ever heard of," needs to either cut the output of the textile industry on which its people depend for their livelihood, or spend its hard-earned money importing more products from the U.S.

Equality through struggle

History has taught us that retreating from an insatiable opponent never earns respect; one must hold one's ground to defend one's vital interests.

Understandably, many global community members, though outraged and disgusted, had few choices other than bending to U.S. pressure and hoping the frenzy would end as soon as possible. However, their wish for negotiating on an equal-footing may be crushed by American humiliation: "Kissing my ass," that's how the U.S. sees it.

However, global countermeasures can and will make the U.S. suffer the fallout of its own absurd policies. After China announced its retaliation, U.S. stock markets saw a historic loss. At noon on April 11, the S&P 500 declined by 4.4 percent, while Nasdaq and the Dow Jones fell by 6 percent and 4.3 percent, respectively.

"The best estimate of the loss from tariff policy is now [close] to $30 trillion or $300,000 per family of four," former U.S. Treasury Secretary Lawrence Summers exclaimed. Moreover, according to Germany's Kiel Institute for the World Economy, full implementation of proposed U.S. tariffs would shrink EU and U.S. GDP by 0.4 percent and 0.17 percent, respectively. If the EU retaliates with 25 percent tariffs, U.S. losses would double.

However, suppose countries fail to stand united in resisting U.S. tariff abuse. In that case, they risk being "divided and conquered" by U.S. economic might and forced into accepting humiliating agreements in America's favor.

Japan's experience under the 1985 Plaza Accord serves as a stark warning. Under U.S. pressure, Japan accepted yen appreciation, crippling its export competitiveness. Later, deals like the 1986 U.S.-Japan Semiconductor Agreement led to Japan's "three lost decades."

Defending international rules collectively

The U.S. "reciprocal tariffs" have violated fundamental principles of the World Trade Organization (WTO) and undermined the multilateral trade framework. This WTO-centered system, established under U.S. dominance and through years of international consensus-building, now faces a crisis as unilateral actions by the U.S. are damaging the interests of other countries and the WTO's authority. Global appeasement will embolden American hegemonic bullying.

Furthermore, tariff abuse risks triggering a protectionist domino effect. Unchecked U.S. protectionism could prompt the rest of the world to follow suit, creating a vicious cycle of beggar-thy-neighbor policies. This threatens to replicate the 1930 Smoot-Hawley Tariff Act's catastrophic exacerbation of the Great Depression and may throw the world into chaos.

The U.S. tariff offensive is not about economic disagreements, but rather a test of the international community's resolve to uphold rules over might. 

With its countermeasures, China is not only protecting its own interests but also standing up for other members of the international community, defending the multilateral trade system, and upholding justice.

Capitulate to unilateralism or resist collectively for a fairer future? The right choice is clear. And it is worth stressing again: Appeasement never secures peace.

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