Beijing responded to the American decision to exempt from the consumer electronics from its reciprocal prices on Chinese imports, describing it as “a small stage by the United States towards the correction of its unjustified China Sunday action, the Ministry of China”. “Equal dialogue based on mutual respect.”
However, the provocative tone of China suggests that Beijing does not intend to retreat, maintaining its position that it will never curl up and is ready to turn the fire for fire. Meanwhile, the exemptions by President Donald Trump, which many, including some of his supporters, consider a pressure formulation, aroused controversy at home while not alleviating the wider American trade conflict.
China’s response, borrowed from a metaphorical blow – “the bell on the neck of a tiger can only be attached by the person who attached it” – obliges Beijing’s point of view that the United States, as the initiator of the prices, must fully reverse its policies.
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Friday, the exemptions, announced by customs and the protection of American borders, cover smartphones, computers, semiconductors and other electronics, protecting nearly $ 390 billion in American imports, including more than $ 101 billion in China, on the basis of 2024 trade data. However, the Chinese Ministry of Commerce has clearly indicated that this gesture Insufficient, which indicates the provision to increase further if the United States introduces new measures.
Beijing has always equaled US tariff increases, recently increasing rights over American products to 125% in retaliation for American rates reaching 145% on Chinese imports.
The state media designed the American move in reaction to domestic lobbying of technology giants like Apple, which faced potential price increases from the iPhone at $ 2,500 at $ 3,500 without relief, and fears of cost consumption.
American exemptions: is Trump collapse?
American exemptions, detailed in a Friday notice, apply retroactively from April 5 and include critical products such as memory cards, solar cells and machines used in the manufacture of semiconductors. They also extend to the 10% reference rate on goods from most other countries, benefiting manufacturers in countries like South Korea, which houses Samsung Electronics.
The decision provides a rescue buoy for technological companies, notably Apple, which assembles 90% of its iPhones in China, and Taiwan Semiconductor Manufacturing Co. (TSMC), which extends American production. A memo separated from the White House has adjusted the shipping tasks of small park, partially reversing Trump’s anterior thrust to end the exemption of “minmis” for the low value plots of China.
President Trump, addressing journalists on Air Force on Saturday, said that he would provide more details on his exemption plan on Monday.
“I will give you this answer on Monday. We will be very specific on Monday,” he said.
Sources suggest that Monday’s announcement may involve a national security survey on imports of semiconductors, which potentially leads to targeted prices, indicating that exemptions can be a temporary maneuver.
However, the decision triggered a counterpoup to the base of Trump, which considers it a retirement from its “America First” sales program.
Analysts attribute the exemptions to intense lobbying of the technological industry, described as a “loud voice” by Daniel Ives of Wedbush Securities, as well as pressure on the market after technological actions have lost $ 773 billion over four days in the midst of tariff fears.
The past few weeks have seen the trade war between the United States and China intensifying, the two parties imposing and increasing the prices. The United States has targeted Chinese goods to solve commercial imbalances and national security problems, especially around semiconductors, while maintaining a tariff of 20% on Chinese imports linked to fentanyl precursors, not affected by exemptions. The prices of reprisals in China have struck American exports harshly, especially in the agriculture and automotive sectors, with American farmers and manufacturers faced with strong losses.
Exemptions provide a breathing room to global supply chains, which are highly dependent on Chinese manufacturing, but do not solve the wider conflict.
While the world is waiting for Trump’s promised announcement on Monday, speculation focuses on new potential prices, especially the targeting of semiconductors. China, on the other hand, shows no signs of softening, its Ministry of Commerce reporting the pre-order preparation of new American actions.
The impact of the trade war continues to repercussions, threatening higher consumer prices and disturbances of the supply chain.
With 390 billion dollars of trade in play, the American standoff remains a battle with high issues. However, we think that for the moment, China has the upper hand.
“China will do Donald Beg and plead for mercy”, prepare for Xi to make insane humiliation rituals on Donald all week, “said Spencer Hakimian de Tolou Capital Management.
