讀後心得

Trump imposed a 34% tariff on China, prompting an immediate response from China, which similarly imposed a 34% tariff on American goods. Japanese Prime Minister Ishiba Shigeru expressed dissatisfaction with the taxes imposed on Japan. The Taiwanese cabinet proposed an 88 billion subsidy plan, but it may not effectively resolve the issue. Currently, the focus of Trump's tariff war is solely on China, while Taiwan and other Asian countries face heavy tax pressures. The effects of this trade war are still unfolding, and the future situation remains uncertain.

Only two people are left in the world facing off! Trump wields the sword of tariffs, and Treasury Secretary Mnuchin sternly warns: any retaliation will only lead to higher taxes! Even Japanese Prime Minister Shigeru Ishiba helplessly stated that Japan is the largest investor in the U.S. worldwide and feels very dissatisfied with being taxed. From Taiwan, the cabinet team led by Premier Su Tseng-chang proposed an 88 billion subsidy plan, but it seems to have not touched the core of the problem. Perhaps Taiwan should clarify which industries face high tariff barriers from the U.S. and specifically propose improvement measures. Furthermore, it should consider expanding procurement plans from the U.S. to balance the trade deficit and initiate negotiations!

In fact, there are only two main players in this tariff war; the rest are merely supporting characters, some of whom can even mediate. Countries like Canada and Mexico are often swaying between tariffs. This time, Trump imposed a 34% tariff on China, and the next day, China responded immediately by announcing a 34% tariff on the U.S., with well-known brands that have a huge market in China, like Apple and Nike, being the first to suffer. With China's counterattack, how Trump will respond next will become the focal point of the world.

Looking back at China's economic development, in 1985 it ranked ninth globally, with an economic scale of only 306.6 billion dollars. With Deng Xiaoping's reform and opening-up policy, by 1990 China had become the "world's factory." Between 1974 and 1990, China had 5 years of surplus and 12 years of deficit, but after 1990, it only experienced a deficit in 1993. In 2001, China joined the WTO, and by 2005, its surplus first exceeded 100 billion dollars, and thereafter China quickly became the world's largest exporter and the second-largest economy. Starting in 2017, China began to challenge the U.S., and this time, Trump’s strike is clearly aimed at China.

Countries in Asia such as Cambodia, Laos, and Myanmar, which rely heavily on China, are also affected by heavy taxation, as are South Africa, Lesotho, Madagascar, and Botswana in Africa, which similarly cannot escape the heavy taxes. Trump has nearly included all countries associated with China in the tax framework. However, China is no longer the minor player it was in 1985; Trump's lumberjack actions have not left China powerless, and China is also capable of a "tit for tat" response. Moreover, Trump’s tariff policy has even hurt his supporting allies; whether this round of fluctuations can lead to what Trump claims – that "the surgery is complete and the stock market will surge" – is likely not so optimistic.

Under China's pressure, Taiwan's industries can hardly enjoy the benefits of low tariffs and can only change with the environment. The current situation shows that no matter where factories are set up, it is difficult to escape the influence of tariffs! This storm is still swirling, and the epicenter has not yet calmed!