According to the Wall Street Journal, the tariffs imposed by US President Donald Trump have become an unpleasant surprise for Chinese President Xi Jinping. Analysts at the Wall Street Journal believe that these tariffs have shaken global confidence in the reliability of the United States. As a result, America's global credibility has collapsed, and it is unclear when, or if, it will be restored.
Earlier, experts at Bloomberg noted that Trump’s high tariffs on imports from China could trigger a shortage of goods in the United States. They emphasized that these tariffs were imposed at a critical time for sellers, March and April, when they usually begin stocking up for the second half of the year to meet back-to-school and holiday season demand.
The Wall Street Journal cautioned against underestimating the broader consequences of the tariffs, suggesting it would be misguided to view the impact as merely domestic. The publication noted that such actions had shaken global confidence in the United States' reliability and could ultimately erode its position as the world’s economic leader. Meanwhile, China appeared to be capitalizing on the situation by strengthening ties with Washington’s allies, with analysts describing the tariffs as a strategic boon for President Xi Jinping.
The tariff shock caused by Trump’s actions may shut the door on a second term. Wall Street Journal experts note that voters originally supported Trump because they fondly remembered the economy during his first term. However, the situation has changed. The Republican has indulged his obsessions with trade and foreign policy, which have yielded negative consequences. Analysts believe he will fail in the next election if nothing changes and Trump stays on this course.
Notably, in early April, President Trump signed an order introducing reciprocal tariffs on imports from other countries. The base rate was set at 10%, but as of April 9, 57 countries were subjected to higher rates, calculated based on the US trade deficit with each individual country. However, the US president later announced that more than 75 countries had refrained from retaliatory measures and requested negotiations. Thus, the base 10% tariff will remain in effect for 90 days for everyone except China.
Following the escalation of the trade war with China, the US imposed an additional tariff of 125% on Chinese goods. In response, China introduced a matching 125% tariff on American products. Moreover, the United States has a separate 20% tariff on China, introduced after accusations of inadequate efforts to combat drug trafficking.
