Kenapa China Berani Lawan Tarif Trump? | FILONOMICS

Summary

The video discusses the ongoing trade war between the U.S. and China, focusing on President Donald Trump's implementation of retaliatory tariffs and China's response. Despite being economically dependent on the U.S., China is boldly challenging America's tariffs, aiming to protect its economy and maintain global trade stability. The video highlights the escalating tariffs, the impact on both economies, and the potential consequences for global markets. It explores how both nations need each other but also stresses the inevitable harm caused by this trade conflict, with no clear winner emerging from the ongoing dispute.

Takeaways

• 😀 The US is often considered the world's largest economy, but China has been willing to challenge its power by engaging in trade wars.
• 😀 President Donald Trump's announcement of reciprocal tariffs triggered a trade war between the US and China.
• 😀 Unlike other countries, China has responded to the tariffs by gradually increasing its own import tariffs on American products.
• 😀 China's President Xi Jinping openly stated that China would not be intimidated by US trade tactics, positioning itself as an economic powerhouse.
• 😀 The tariff war escalated quickly, with the US initially imposing a 34% tariff, followed by China retaliating with the same tariff, and the US raising it to 84%.
• 😀 The US eventually imposed a 145% tariff on Chinese goods, which made imports much more expensive than the products themselves.
• 😀 Despite the pressure, China continued to push back, raising tariffs on US imports to 125%, signaling confidence in its ability to withstand the trade war.
• 😀 The ongoing trade war has affected both countries, with China seeking support from other nations, like Vietnam and the EU, to counter the US's actions.
• 😀 This isn't the first time the US and China have engaged in a trade war; similar tensions arose in 2018, though the tariffs were not as high as today's rates.
• 😀 Both economies depend on each other: China relies on exports to the US, while the US is highly dependent on Chinese goods. Therefore, both sides stand to lose from the tariffs.
• 😀 The trade war could have a broader impact on global markets, contributing to uncertainty, inflation, and disruptions in global supply chains.

Q & A

What was the main cause of the trade war between the United States and China?

The trade war began when President Donald Trump introduced reciprocal tariffs against China, aiming to address perceived unfair trade practices and reduce the trade deficit with China. China responded by imposing its own tariffs in retaliation.

How did China respond to the United States' initial tariff increase?

China responded quickly by raising tariffs on U.S. imports, matching the U.S. tariffs in percentage and continuing to escalate in retaliation. Initially, the tariffs imposed by China were as high as 34%, but later they were increased to 125%.

Why did President Xi Jinping of China refuse to back down from the tariff war?

Xi Jinping stated that China would not be intimidated by U.S. tariffs. He emphasized that China had become a global power through its own efforts and would not succumb to unfair pressure from the U.S. He also expressed that there were no winners in a trade war.

What impact did the trade war have on China's exports to the United States?

China’s exports to the United States saw a reduction in value, with the total export figure falling to about 15% of China’s overall exports in 2023, down from nearly 20% in 2018. However, China was able to mitigate the impact by diversifying its markets and finding alternatives to the U.S.

How dependent is the United States on Chinese products?

The United States remains highly dependent on Chinese products, especially strategic items. By 2022, over 500 key products imported from China were critical to the U.S., indicating that a large-scale shift away from Chinese goods would be difficult for the U.S. economy.

How did the U.S. attempt to mitigate the effects of tariffs on its own economy?

The U.S. exempted certain goods from the tariffs, including smartphones, computers, and other electronic devices, primarily due to the significant role China plays in supplying these items. This helped to alleviate some pressure on U.S. tech companies like Apple.

What are some examples of China diversifying its markets in response to the tariff war?

China has been looking to sell its goods in alternative markets by targeting countries like Vietnam and the European Union. Additionally, some Chinese manufacturers began promoting luxury goods like handbags at significantly lower prices, showcasing their ability to compete outside the U.S. market.

How did Chinese manufacturers manage to challenge the luxury goods market?

Chinese manufacturers claimed they could produce high-quality luxury items, like Hermes Birkin bags, at a fraction of the price. Although their products were disputed as counterfeit by brands like Louis Vuitton, it showcased China’s growing ability to compete in global luxury markets.

What were the economic consequences predicted by analysts for both the U.S. and China due to the tariff war?

Analysts predict that China’s economy will suffer, with growth rates potentially dropping to around 4% in 2025. The U.S. economy could also be affected, with inflation likely rising as a result of increased import costs, and possibly even facing a recession due to the broader economic disruptions caused by the tariffs.

What is the future outlook for a resolution in the trade war between the U.S. and China?

While there is no immediate solution in sight, both countries are aware that prolonged tariffs will hurt both economies. There have been calls for a negotiated settlement, which could lead to a 'win-win' situation for both countries and minimize global economic damage.