ByAnthony Moretti
China has responded reasonably and soundly to the U.S. administration’s unnecessary tariff provocation. Moreover, it has already indicated that it is willing to work with respected international organizations to stop the reckless pattern of tariffs emanating from the U.S.
Hours after U.S. President Donald Trump announced a 34 percent increase in tariffs against China, Beijing said it would do the same against U.S. imports. In explaining the decision, the Chinese Foreign Ministry reminded the global community that the U.S. is acting irrationally: This practice (of excessive tariffs) of the U.S. "does not conform to international trade rules, seriously undermines China's legitimate rights and interests and represents a typical act of unilateral bullying."
"A typical act of unilateral bullying," a spot-on assessment of Trump's delusional ideas. Whether he is consumed by ignorance or arrogance, the Trump administration is threatening the economic health of countries big and small. The more dangerous his decisions are, the more appealing other world leaders will find China's solemn and sober policies. The often-heard Chinese statement of peaceful coexistence, mutual respect and win-win cooperation is especially valuable now. Viewed another way, China will be considered the lighthouse, visible to a ship's crew eager to find respite from a storm.
Of course, in the U.S. and throughout the West, the primary question is why Trump continues to believe in a policy that one economist after another has said will not work.
The ramifications of what he described as "Liberation Day," the day that the U.S. would begin to be freed from trade deficits and an over-reliance on goods produced elsewhere, will include higher prices for U.S. consumers and higher costs for U.S. businesses. Inflation will go up, and so will unemployment numbers.
Meanwhile, the U.S. stock market is in free fall: In the two trading days since "Liberation Day," the Dow Jones fell 9.2 percent, the S&P 500 dropped 10.5 percent and the Nasdaq cratered 11.4 percent.
But there are also newsworthy reactions in Asia. After learning that they would face 24 percent tariffs on exports to the U.S., the Japanese are eager to "unite the entire country" to fight a "national crisis." South Korea, now facing 25 percent tariffs, is planning "emergency support measures" to bolster affected domestic companies. Vietnam, now facing 46 percent tariffs, lamented that the U.S. actions do not "reflect the spirit of our comprehensive strategic partnership, which is built on peace, stability, cooperation and development."
In fact, when assessing the effects of the tariffs throughout Asia, only one conclusion can be drawn: In the short term, every nation in the region will face trouble. There is an irony at play: When Trump was president from 2017 through 2021, he demanded manufacturers be less reliant on China and shift production to other Asian nations. Now, those countries that welcomed new businesses might see their economies wrecked by double-digit tariff hikes. What a slap in the face.
However, because China is the economic dynamo of Asia, not to mention a significant contributor to growth across the world, its words and follow-up actions were certain to be the most scrutinized. Beijing's serious, but necessary and appropriate, response again indicated to the world that it will not be bullied by the bully.
In confirming it would not allow the U.S. to push it around, China also knew that tit-for-tat tariffs would damage its economy. Remember, it was only one month ago that the government announced it expected domestic growth to reach roughly 5 percent in 2025. That figure will become increasingly difficult to reach the longer Beijing must focus its attention on Washington's cavalier attitude toward economic health around the world.
Part of that focus will mean an appeal for relief by the World Trade Organization (WTO). China's anticipated case against the U.S. is based on a simple premise: The U.S. tariffs are out of touch with WTO rules. However, considering that the U.S. no longer sees the WTO as a viable global body, there is little reason to think that Washington will accept any decision against it. The bully must continue to bully.
The president has offered no hint that he will rein in his enthusiasm for tariffs, which he loves disastrously. One can hope that the weekend will give him a couple of days to reconsider his affinity for trade wars.
Then again, no one should hold their breath. Granted, multiple countries are expected to appeal to Trump for tariff relief. However, as they do that, they would be wise to consider whether Washington can be trusted as a reliable partner.
Anthony Moretti, a special commentator for CGTN, is an associate professor at the Department of Communication and Organizational Leadership at Robert Morris University in the U.S.
