On July 30, local time, the Office of the United States Trade Representative issued a bombshell news. In its statement, it announced that it had received more than 1,000 proposals and that it would postpone the implementation of the special tariffs on certain imports from China, which was scheduled to take effect on August 1, until at least two weeks later.
United States Department of Commerce Building
In the meantime, it will carefully review the proposals, re-examine the relevant special tariff measures, and announce the final version of the tariff measures in two weeks.
It is reported that the related products affected this time include electric vehicles, medical devices and computer chips, among which electric drive vehicle products have attracted much attention.
As the core battlefield of the competition between the East and the West after the fierce competition between China and Western auto companies, China's electric vehicle industry has recently suffered a series of encirclement and interception by many Western countries represented by United States. Not only the United States, but also the European Union is also pushing for so-called temporary special tariffs on Chinese electric vehicle companies at this time. For a while, the "big net" of Western countries for Chinese electric vehicle companies seems to be ready.
European Parliament
At this critical juncture, the news of the United States announcing the postponement of high tariffs on China-related products will inevitably trigger heated discussions in the outside world.
At present, it seems that the reason behind the Biden administration's relevant measures may be to send a signal of détente to China, hoping that China can cooperate with the current economic policies of the Democratic Party, and then strive for more advantages for the Democratic Party in the November 2024 election.
At the same time, former United States President Trump, who has been taking a more radical attitude on China-related issues, and the Republican candidate in the United States presidential election, have also begun to change their previous attitude towards China.
United States former President Trump
So far, Trump has spoken publicly on many occasions, changing his previous rejection of Chinese companies and electric vehicles, and expressing his willingness to welcome Chinese car companies to United States and invest in factories.
Until then, Trump had been hostile to electric vehicles, especially to growing Chinese electric vehicle companies, due to the large number of blue-collar workers in the Rust Zone among Trump supporters and Republican voters, as well as supporters of United States fuel-powered vehicles.
There are three reasons for Trump's change in attitude. First, there is a shift in Trump's campaign strategy. The July 13 rally attack shocked Mr. Trump, who later turned away from his radical style and called for "unity" at the Republican National Convention.
Trump gives a speech
Under this change, Trump has also begun to gradually review some of his original governance concepts. In his speech on inviting Chinese electric vehicle companies to build factories in the United States, he also emphasized that Chinese companies should build factories in swing states or Republican-dominated states and hire United States workers. It can be said that such remarks are ultimately in the service of his election activities.
On the other hand, Trump previously accepted a large donation from United States billionaire Elon Musk, although the two sides later refuted rumors that the donation amount was not as exaggerated as the rumored $45 million per month, but considering Musk's consistent style of acting, this amount will not be too small.
In this context, Trump has also begun to change his previous attitude and began to release a relatively open signal to electric vehicle companies.
Elon Musk
Third, it is due to a shift in the way we think about working with China. Eight years have passed since Trump first took office, during which time there has been constant economic and trade friction between China and the United States. United States has to admit that the future of decoupling between China and the United States, which it envisioned at the beginning, and then United States pulling allies to form a small circle to squeeze out China, is not very likely.
In this context, Trump needs to start from the original underlying logic of "United States First" and reformulate relevant strategies. In the past, some Chinese products have indeed been exported to United States through "North American duty-free countries" such as Mexico and Canada to avoid high tariffs.
What Trump needs to face is that instead of transferring large profits to Mexico or Canada, it is better to directly invite Chinese capital to cooperate with the United States in United States if conditions permit.
Tesla factory
However, it should be emphasized that for China, what we have been asking for is genuine trade cooperation based on the principle of equality and reciprocity. The idea of some United States politicians, based on their own interests, to force China to compromise through unreasonable means will not succeed in the end.
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