‘Tariffs are What Make America Great Again’: US-China Tensions Escalate

Yaqi Wang | Agence France-Presse

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The US-China trade disputes have resulted in a series of heated retaliations and dialogues amongst the two countries. The idea of a trade war with the United States has already been addressed by China in a previous interview, where officials stated: “we do not want a tariff war, but we are not afraid of one”. This bold response came after President Trump’s warnings that he might increase taxes on imports from Beijing, due to the new Chinese restrictions of rare earth exports (a key ingredient for many consumer products, including electronics).

^ Donald Trump and Xi Jinping had two hours of talks in South Korea.

Trump also stated defiantly that if China continued down the risky path of starting a trade war, then there would be a chance that the US would add tariffs on China “in numbers that we’ve never seen before”, and that the tariffs could even reach an overwhelming amount of 1000%, an increase far exceeding previous levels, in addition to the 100% tariffs already set in place. Such warnings were probably meant to pressure China into compliance, ensuring that trade agreements were always in the United States’ favor.

Speaking at a conference, Trump claimed that the pressure from the United States had pushed China to finally “back down” and ease limits on the  rare-earth exports. He described this achievement as “a huge win for the Americans”, and suggested repeatedly that more great agreements and deals with President Xi Jinping could follow in the future. However, Trump still accused China of hesitating to fully cooperate with the United States. “They bring in many goods, but so many of them are poor in quality, and fake,” he remarked, without providing specific evidence to support his claim. He also added that Beijing “could get the United States certain things we can’t easily get ourselves”. 

Despite this dispute, President Trump insisted that cooperation was still possible if countries aligned themselves with Washington’s objectives. “Trade stability is only possible when countries work along with the United States,” he stated. “We will only achieve true cooperation if they help the United States achieve trade stability.” He added that most governments would support the US in the trade dispute with Beijing, though he did not mention specific nations. 

When questioned on the possibility of tariff reductions on China, President Trump said that such a move would depend completely on Beijing’s next actions. He said that “We can only take away tariffs if China decides to cooperate with the US,” and that “If they chose a path of violence, I’m not sure what to do next,” suggesting that future decisions would be contingent on China’s response.

The US president also described his tariff regime as having potential to last through what he called his “third or even fourth term”. “The tariff system has made billions - if not trillions - in revenue,” he said, repeating a claim he has made in the past. “Tariffs are what make ‘America Great Again’”. He presented this tariff strategy as both an economic and political triumph to America. 

The trade dispute has raised concerns among worldwide business. Many companies have cautioned that continued additions of tariffs could disrupt supply chains and affect long-term investment decisions, which were very crucial. Overall, the trade disputes show that while both countries exchange harsh and retaliatory measures, there is still a possibility of cooperation if each nation approaches trade talks in good faith.