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The Trade War Between The United States And China Is Far From Over: While Donald Trump Threatens With 100% Tariffs, China Offers Zero Tariff To Less Developed Countries And Boosts International Influence.
The trade war between the United States and China is far from over, and the recent moves by both countries show that the dispute is heating up even more. On one side, Donald Trump, the elected President of the U.S., intensifies his aggressive stance, threatening Brics countries with 100% import tariffs on their products. On the other hand, China responds with diplomatic and commercial strategies, drawing closer to emerging and less developed nations, offering trade advantages that could change the game.
Trump And The Protection Of The US Dollar
Since his campaign, Trump has promised to protect the US dollar from potential threats, especially those coming from the Brics group — formed by Brazil, Russia, India, China, and South Africa. In one of his posts on Truth Social, Trump made it clear that he will not accept any attempts at dedollarization. The idea of a common currency for the Brics, discussed in October during the group summit in Kazan, Russia, raised alarms in Washington.
Trump threatened to impose 100% tariffs on products from Brics countries if they proceed with plans for an alternative currency. “The idea that Brics countries are trying to move away from the dollar while we sit back and watch IS OVER,” Trump declared. He reinforced that the United States will not allow the dollar to lose its status as the world’s reserve currency.
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In addition to tariffs, Trump and his advisors are considering other measures to maintain the dominance of the dollar, including export controls and taxes on trade with nations adopting alternative currencies.
China’s Response
While Trump hardens his rhetoric, China is moving in the opposite direction, choosing to build alliances with emerging and less developed countries. Since the 1st of this month, Beijing has adopted a new trade policy that exempts all products from countries classified as “less developed” by the UN from tariffs. This includes nations with a gross per capita income of less than US$ 1,018, most of which are located in Africa.
This measure positions China as the first major global economic player to adopt such a wide-ranging tariff policy for less advantaged countries. The expectation is to create new export opportunities for these nations in the vast Chinese market. According to China’s Ministry of Commerce, the aim is to strengthen partnerships and help these countries integrate into global trade.
China’s advancement in Africa, for example, is not new. In the past 20 years, Chinese investments in the region have jumped from a modest US$ 74.8 million in 2003 to an impressive US$ 4.23 billion in 2020. And the future promises even more: President Xi Jinping announced that China will provide US$ 50 billion in financing to Africa over the next ten years.
Technology In The Crosshairs Of The Trade War
The tension between the United States and China is also reflected in the technological arena. Recently, the U.S. Department of Commerce imposed new restrictions on China’s access to advanced technologies for semiconductor production. Beijing reacted quickly, announcing restrictions on the export of essential materials like gallium and germanium, used in both civil and military technologies.
These mutual embargos show that the trade war goes beyond tariffs and economic partnerships. Now, the dispute is deeply rooted in the control of strategic technologies, essential for the future of innovation and national security.
The Impact Of China’s Zero Tariff
China’s decision to adopt zero tariffs for less developed countries goes far beyond an economic measure. It is a strategic move to expand its global influence, especially in regions where the United States’ presence is limited. In practice, this creates a network of economic dependency, strengthening commercial and diplomatic ties with countries that have few resources to negotiate on equal terms with major powers.
This policy aligns with China’s narrative of being a reliable and supportive partner, as opposed to the more imposing stance taken by the United States under Trump. This reinforces the view of Beijing as an alternative leader in the global economic order.
What To Expect From This Trade War?
The trade war between the United States and China is far from just a tariff dispute. It is a battle for global economic and technological leadership, with each side using its best weapons. Trump bets on protectionism and the defense of the dollar as the central currency of global trade, while China expands its partnerships and seeks to reduce dependence on the American currency in international transactions.
What is clear is that neither side is willing to back down. Trump’s firm stance may cause tensions with traditional allies like Brazil, while China’s strategy of offering trade advantages to less developed countries increases its influence in strategic regions. At the center of this dispute is the future of the global economy, which will be shaped by the decisions and alliances made today. It remains to be seen how far these two giants are willing to go to achieve their goals.
Sabemos das intenções intenções dos EUA, ou seja , submeter as nações mais pobres e vulneráveis , a aceitar e ficarem refém da sua política expansionista. a China e o brics juntamente com países amigos, têm uma missão fundamental e muito importante, se unirem e fazer frente as intenções de ameaças do Trump.