Asean states are concerned and troubled by the harsh tariffs imposed on them by the Rump regime. And the difference is stark after the agreement by US and China to reduce their respective tariff to pre tariff war level. Though the rates was 30% on China and 10% on American goods, the rate was actually 10% each. The Americans raised the tariff by 20% on China using the fentanyl drug as an excuse, blaming China for America's drug problem. China is calling the American lie and telling the Americans to take care of their own drug problems. China has nothing to do with drugging Americans. This additional 20% due to fentanyl is still being contested.
When this issue is settled, the effective tariff for both sides would be 10%. Comparing this to the tariffs Trump imposed on the rest of the world, in particular to ASEAN countries, China would not look like being better off. Trump has capitulated after understanding the interdependence of trade of both countries and would have to tone down his war cry against China. Hitting China with high tariffs is as good as hitting the American consumers and industries and slapping his own face.
On the other hand, hitting and bullying smaller countries around the world, including ASEAN, is easy, a piece of cake. For countries that solely depended on the American consumer market, this is a bit too hard to swallow. Trump is a big bully and would bully everyone he could, but not China.
See how he swaggered into the Middle East like John Wayne, and taking billions from the Arabs with no resistance. See how he treated Panama, Mexico and Canada. And he is still trying to take over Greenland and the Gaza. Trump is a ruthless gangster and he is proud of it. There is no one out there to stop him from taking anything he fancies.
ASEAN under Anwar's chairmanship has taken a new approach to tackle the American bullies. ASEAN alone is not enough. Anwar is bringing together China and the Gulf States to act as one to face the Americans. This combination is good for all three parties. Only Anwar can pull this through as an international statesman with some standing and influence and with good relations with the Gulf states and China. How impactful is this move is too early to tell, but it is another sign of the rest of the world collaborating to take on the Americans directly and to isolate the Americans from the rest of the world.
The tariff war is not over. After the 90 day truce with China, Trump, if he is still around, would start to misbehave again. The world must expect incessant warmongering and posturing by Trump through his term in office until he is taken out or down.
2 comments:
The stock market is shooting up and someone is making lots of money. Come the 90 days, it will crash once again, and some people will be buying in. Trump is a 'God of Prosperity' for those within his circle, having insider news regarding his next move.
Trump had a taste of China's retaliation regarding consumer goods not being restocked inside shelves of USA retail outlets and spiraling prices. His bluff failed to unsettle China, and he had to quietly backtrack, knowing it is now difficult to force China to succumb. Kiss his arse my foot, says China.
China did not make the first move to negotiate, despite all the gloating by the lying trio - Trump, Bessant and their spokeswoman. Only the USA side was gloating about negotiations ongoing, with China telling the world that nothing of that was happening. Who do we think people around the world would believe in?
The USA side could not wait any longer for Chinese ships carrying consumer goods but avoiding USA ports and unloading at other places instead of turning around. People in glass houses should not throw stones when they are in truth more fallible. Bessant was gloating about China having to depend more on the USA than the other way round, citing the fact that China had a trade surplus against the USA. I would have thought that since the USA is buying more from China, the exact opposite should be the narrative. For someone who is thought to be so well-heeled in economics and financial matters, he really surprised me by saying that.
While Trump is playing around with his big, beautiful and wonderful tariffs, China is already forging ties with alternative markets for its products. What is the motive of the recent meeting in Kuala Lumpur comprising China, Gulf States and ASEAN? To exchange T-shirts and have a photoshoot? Adults do not do that nonsense, and they are doing more sensible things, talking about removing tariffs, opening up more trading opportunities and co-operation in other fields.
Five years down the road and I believe the USA will lose more foreign investments than gaining them, and more job losses than ever before. The next person in the White House will then blame Trump, using the same modus operandi as always.
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