Trump Wavers on Summit with China After Announcing Sweeping Tariffs
Recently, US President Donald Trump has announced that tariffs on Chinese goods will be increased by 100%, alongside the implementation of export controls on 'all critical software', effective from 1st November.
President Trump stated that the additional tariffs and US export controls on 'all critical software' would take effect on 1st November.
While announcing the significant tariff hikes on China via social media, President Trump also remarked that 'there is no longer any need for him to meet with China's top leader at the end of this month'.
However, following this initial statement, Reuters reported that when White House reporters subsequently asked whether his meeting with China's top leader at month's end had been cancelled, President Trump backtracked, stating that he has not cancelled the meeting, though he is uncertain whether it will proceed. However, he has confirmed his attendance, suggesting that the summit remains a possibility.
President Trump expressed 'shock' at China's sudden announcement of a series of export control measures. He indicated that we should wait and see, and it is precisely for this reason that he set the effective date for the (additional 100% tariff) as 1st November.
The measures the US is preparing to implement indicate President Trump's strong reaction. Beyond imposing high tariffs on China, he has directly raised the tariff rate to triple digits and initiated new technological restrictions against China. It remains unclear exactly which software will be restricted, or whether all software will be included on the restriction list, as indicated in his post.
Hu Xijin, former editor-in-chief of China's Global Times, has written that Donald Trump is currently in a foul mood. Trump's failure to secure the Nobel Peace Prize is likely one factor, compounded by hawkish elements within the US stirring him into confusion once more. He now seeks to replay the standoff that occurred between the two sides in April and May this year-a confrontation in which the American side ultimately came off worse.
Following President Trump's announcement of raising tariffs on China to 130%-an additional 100% on top of this year's 30% increase-US stocks experienced a flash crash. Within eight hours, President Trump appeared to realise he had overplayed his hand. Having previously declared he would never meet, he abruptly reversed course, stating he would meet no matter what. He added he would wait in South Korea for the Chinese delegation to appear. This abrupt reversal stunned both media and markets.
Analysis of President Trump's latest statements suggests two key points:
Tariff threats serve as negotiation tactics, yet remain potentially enforceable: The announcement of 100% tariffs on Chinese goods from 1st November constitutes his characteristic pressure tactic, aimed at bolstering leverage for the upcoming summit. Despite the tough stance, given his history of policy reversals, should the threats fail to yield the desired response, he may still implement the tariff policy in the short term.
The tariff threat exposes US strategic anxiety: The timing of President Trump's threat coincides with China's introduction of countermeasures in areas such as rare earths, revealing America's passive position and anxious mindset in the trade game. His threats appear more like an 'emotional outburst,' as the high tariffs imposed in April and May have already backfired on the US economy. Further substantial increases would likely exacerbate domestic inflation and harm corporate interests, casting doubt on the policy's actual enforceability.
Prior to 1st November, the APEC summit is scheduled to convene in South Korea. Reports indicate President Trump has consistently sought a pivotal meeting between Chinese and US leaders during the summit. However, no definitive information regarding a summit between the two heads of state has been released by China thus far, pending official confirmation.