China called Donald Trump‘s bluff. The plan was that heavy tariffs would rapidly force the country into a humiliating climbdown, in which they’d roll over and accept Donald Trump’s terms. That didn’t happen, instead the Chinese government vowed to “fight to the end” and stuck to their guns, matching Trump’s tariffs with reciprocal tariffs of their own.
As of writing, US tariffs on Chinese imports are at an incredible 145%, with China hitting back with 125% tariff on US imports. Tariffs this ludicrously high make trade all but impossible – there’s no realistic difference between a 145% tariff and a 1450% tariff.
However, it’s safe to say US consumer and producers are hurting much more than their Chinese equivalents. Yesterday I wrote about soybean farmers facing oblivion, today we heard about Chinese providing subsidies to their exporters to see them through this, the dollar is crashing in value, and the stock market is still in deep crisis.
This situation cannot continue indefinitely and the White House is clearly terrified that China doesn’t seem to be capitulating in the slightest.
BOOM:
— Joe Weisenthal (@TheStalwart) April 11, 2025
*US TOLD CHINA TO REQUEST A XI-TRUMP CALL: CNN
Resorting to begging China to call you, presumably so Trump can insist they reached out first and thus claim a weak victory, is transparently pathetic, as identified by many responses:
no I’m returning *your* call
— kingy (@AnImminentKing) April 11, 2025
Other responses indicate that Trump is folding:
Trump folding like a lawn chair
— C•S (@CSWSmoving) April 11, 2025
And that this is, simply, surrender:
— Fidelitas Lex (@fidelitas_lex) April 11, 2025
In a way, it’s darkly amusing that Trump’s tariff plan has gone so catastrophically wrong. It’s ambitions were to reestablish the United States as a muscular, decisive presence on the world stage that won’t be pushed around. The exact opposite has happened: Trump walking back his tariffs has shown that he blinks under pressure, the nation’s reputation as a fair trading partner has been shredded, and China’s stature has skyrocketed.
The US and China will almost certainly be forced into an agreement soon, but given how things have played out over the last few days expect China to come out on top. At every step they’ve outthought, outfoxed and outmanoevered Trump, being able to figure out what’s bluster and what’s real. Expect them to swan into any negotiations with the upper hand.
It’s been a deeply humiliating week for the United States in general, but especially so for Donald Trump himself. He’s unlikely to ever admit fault, but he may have torpedoed his second term before it even got properly started.
Published: Apr 11, 2025 09:56 am