On Friday, this morning, I was going through the news online and found that China raised its tariffs to 125% on imported goods from the US. Where it was 84% till yesterday. China is hiking the tariffs against the US as it hits back at President Donald Trump’s decision to hike duties on Chinese goods to 145%. Which leads to intimidation and a trade war. These fights and challenges will spread all over the world. No one wishes to stop. This type of arrogance threatens the whole world economy. Both countries will suffer from this fight; no one is in a safe place, and this trade war will impact the whole world economy. And a way to be an economic recession and inflation for the whole world. President Donald Trump continued his pressure on China, trying to sign a trade agreement with China under this pressure. A tariff pause of 90 days was a relief for the rest of the countries. It was also a trap of President Donald Trump to divide these countries from China and pull them under his Klan. Or, President Donald Trump understood the reciprocal tariffs were a fruitless decision or a misfire and a possibility of a backfire, which is why he cunningly announced a pause of 90 days. Or something else!
On the other hand, Chinese President Xi Jinping is going to visit Malaysia, Vietnam, and Cambodia next week. This is his first official foreign visit this year, as the country’s government announced this week. What can we assume? It could be a random visit, or something is fishy over there. Vietnam has maintained a good relationship with the US and China at the same time, for a long time. Which is called “Bamboo Diplomacy.” Does this visit of the Chinese President have any effect on their current diplomatic policies? Is there any impact of reciprocal Trump tariffs? And what could be the upcoming role of President Trump? Will he take it easy? Or something else! On the other hand, Malaysia has already cleared its stand and declared a statement regarding this visit of Chinese President Xi Jinping, It’s a general practice of Malaysian foreign affairs to maintain better trade relations with various countries, including China. It seems that Malaysia is playing the safe, as we can see. At this stage, China has already influenced well and made a big impact on Cambodia in recent years. China invested billions of dollars in Cambodia's infrastructure, whereas the US was far away. Cambodia is the strongest ally of China in Southeast Asia, which is remarkable. And China will try to take full advantage of it, as they are undoubtedly the best player in this field.
Hikes of Tax and Hits Back of China and other recent moves are a matter of observation. Anything can happen shortly, which is unpredictable. All of a sudden, we could see another stunt or a new strategy from President Donald Trump. Or a backflip, as we found a pause of reciprocal tariffs for 90 days. But I think President Donald Trump won't stop here, he will try to distract the whole world from these reciprocal tariffs and engage in new topics with a new strategy to fulfill his motive. However, there is relief that the recession and inflation probability have decreased percentages this week, which we have seen in the predictions of the financial institutes, economists, and other world trade leaders.
At the end of this blog, I wish to see a workable trade atmosphere where every country is doing its own trade business independently, with no trade war anymore. Neither harming each other nor trying to hunt, A well-balanced world trade. I’m dropping out here, see you in my next blog with a new topic, have a great day!
Above mentioned pictures are edited with Canva.