Xinhua News Agency: Imposing tariffs harms others and persuades the US to settle this account

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 Xinhua News Agency: Imposing tariffs harms others and persuades the US to settle this account


The United States launched a 25% tariff on $200 billion of Chinese imports to the United States on the 10th, and threatened to impose a tax on another $325 billion of Chinese imports to the United States to increase the threat to China by exerting extreme pressure.

Some Americans may forget the fact that history has proved many times that trade wars are doomed to harm others and themselves.

Using the words of Geng Shuang, spokesman of the Chinese Foreign Ministry, on the 14th, he advised the US side to take a look at the response of the international community, listen to the voices of people from all walks of life, calculate the gains and losses of its own interests, and recognize the situation as soon as possible and return to the right track.

u2014u2014 Who did the tariff hurt?

The United States believes that tariffs will bring considerable wealth to the United States and make the United States stronger. Is that really the case?

On the evening of the 13th, after China announced tariff measures against the United States and Canada, U.S. Dow Jones Index futures fell by about 2%, the Dow Jones and S&P 500 index fell by more than 2.5%, and the Nasdaq index fell by more than 3%.

The latest tariff escalation is too big a gamble for the U.S. economy, which will jeopardize U.S. employment and increase consumer costs. Matthew Shea, president of the National Retail Federation of the United States, bluntly stated in his statement that there is no winner in raising tariffs.

American soybean farmers have fallen into a desperate situation and hope that the economic and trade frictions between the United States and China will be properly resolved and that they will not continue to add more code. David Stephens, president of the American Soybean Association, also issued a warning.

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Over the past few days, many trade associations, such as the National Committee on US-China Trade, the American Information Technology Industry Association, the Consumer Technology Association and the Garment, Footwear and Hosiery Federation, have issued statements opposing tariffs imposed by the United States and Canada, urging the US-China economic and trade negotiations to return to normal track as soon as possible.

The domestic concerns of the United States coincide with the analysis of many think tanks in our country.

Gao Lingyun, a researcher at the Institute of World Economy and Politics of the Chinese Academy of Social Sciences, said that from the 10% tariff imposed on $200 billion in goods in advance, China has borne about 10% of the additional cost, while retailers, manufacturers and consumers in the United States have borne the remaining 90%. Upgrading tariffs will be paid more by American importers or import agents.

The spillover effects of trade wars will also seriously undermine global value chains.

u2014u2014 Has the US achieved its goal of reversing its trade deficit?

One of the purposes of the US tariff increase on China is to improve the so-called trade deficit in goods. However, according to the data from the General Administration of Customs, in the first four months of this year, the total value of Chinas trade with the United States dropped by 11.2%, while the trade surplus with the United States increased by 10.5%.

Data released by the U.S. Department of Commerce in March showed that the total trade deficit in goods and services between the United States and other countries in the whole year of 2018 was $621 billion, an increase of $68.8 billion from 2017, the highest level since 2008.

Looking around the world, more and more countries trade with China than with the United States, embracing the huge potential of the Chinese market.

Source: Xinhua responsible editor: Yang Yi_NBJ10647