The God-Emperor 2.0 knows perfectly well that trade wars are winnable, in some circumstances, and that those circumstances apply to the USA vis-a-vis China as well as a number of other Asian and European countries, as indicated by his most recent Executive Order:
Section 1. Background. With Executive Order 14195 of February 1, 2025 (Imposing Duties to Address the Synthetic Opioid Supply Chain in the People’s Republic of China), I determined that the failure of the Government of the People’s Republic of China (PRC) to act to blunt the sustained influx of synthetic opioids, including fentanyl, flowing from the PRC to the United States constituted an unusual and extraordinary threat, which has its source in substantial part outside the United States, to the national security, foreign policy, and economy of the United States. To address that threat, I invoked my authority under section 1702(a)(1)(B) of IEEPA to impose ad valorem tariffs on articles that are products of the PRC, as defined by the Federal Register notice described in section 2(d) of Executive Order 14195, as amended by Executive Order 14200 of February 5, 2025 (Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People’s Republic of China).
Pursuant to section 3 of Executive Order 14195, I have determined that the PRC has not taken adequate steps to alleviate the illicit drug crisis through cooperative enforcement actions, and that the crisis described in Executive Order 14195 has not abated.
Sec. 2. Amendment. In recognition of the fact that the PRC has not taken adequate steps to alleviate the illicit drug crisis, section 2(a) of Executive Order 14195 is hereby amended by striking the words “10 percent” and inserting in lieu thereof the words “20 percent”.
Although China’s Foreign Ministry is clinging to its Ricardian rhetoric, the fact that they’re not escalating tends to indicate that they understand that at least with regards to this particular trade issue, the US President holds all the cards.
The New York Times: The United States has imposed further 10 percent tariffs on most goods from China. What is your reaction?
Lin Jian: I believe you’ve noticed the statements released by competent Chinese departments. The fentanyl issue is a flimsy excuse to raise U.S. tariffs on Chinese imports. China has made clear its opposition more than once. Our countermeasures to defend our rights and interests are fully legitimate and necessary.
The U.S., not anyone else, is responsible for the fentanyl crisis inside the U.S. In the spirit of humanity and goodwill towards the American people, we have taken robust steps to assist the U.S. in dealing with the issue. This is obvious to all and people from various sectors in the U.S. have expressed thanks to China on multiple occasions. Instead of recognizing our efforts, the U.S. has sought to smear and shifted the blame to China, and is seeking to pressure and blackmail China with tariff hikes. They’ve been punishing us for helping them. This is not going to solve the U.S.’s problem and will undermine our counternarcotics dialogue and cooperation.
Let me reiterate that intimidation does not scare us. Bullying does not work on us. Pressuring, coercion or threats are not the right way of dealing with China. Anyone using maximum pressure on China is picking the wrong guy and miscalculating. If the U.S. truly wants to solve the fentanyl issue, then the right thing to do is to consult with China on the basis of equality, mutual respect and mutual benefit to address each other’s concerns. If the U.S. has other agenda in mind and if war is what the U.S. wants, be it a tariff war, a trade war or any other type of war, we’re ready to fight till the end. We urge the U.S. to stop being domineering and return to the right track of dialogue and cooperation at an early date.
Below is the list of the ten countries whose positions are weakest concerning a potential trade war with the USA:
- China $279 billion
- Mexico $152 billion
- Vietnam $104 billion
- Germany $83 billion
- Japan $71 billion
- Canada $67 billion
- Ireland $65 billion
- South Korea $51 billion
- Taiwan $47 billion
- Italy $44 billion