2025.04.11 16:30 (Updated 2025.04.11) | Togo
Trump's tariff war may seem like a one-country fight against the whole world, but in the end, Trump dealt a heavy blow to China and its allies.
Has the US-China tariff war ended?
This week's sharp fluctuations in the Taiwan stock market, clearly aided by the intervention of the National Stabilization Fund, successfully created a lower shadow line of over 1,000 points, suggesting the market may have bottomed out. However, investors wishing to enter the market must be risk-aware and should consider phased entry, as the biggest risk in financial markets is uncertainty, and the uncertainty surrounding Trump is known worldwide.
Trump's tariff war, seemingly a one-country battle against the entire world, has already been spoiled in its ending: a devastating annihilation of China and its allies. Any affected third parties, if willing to bow down and compromise, can expect to be spared by the "Tariff Emperor" Trump.
The problem is that while Trump is undoubtedly a powerful figure, Xi Jinping is also a formidable dictator. If it were a private negotiation, the two might be able to compromise. However, with public confrontations and humiliations, and a domineering attitude of "those who obey me prosper, those who oppose me perish," neither side has a way to back down, leaving them no choice but to fight to the bitter end.
In this US-China confrontation, there are no winners for either Trump or Xi; the difference lies in whether they suffer minor or major losses. Trump may seem to have a greater chance of winning, but his lack of trust and uncertainty has already cast a shadow over allies, making it difficult for him to regain the prestige that commands genuine respect. In other words, the "greater America" is not about persuading others with reason, but about winning by sheer force, displaying the domineering nature of an "imperialist" leader.
As for Xi Jinping, the red emperor of the Chinese empire, even with limited leverage and a willingness to yield, he cannot openly show weakness; otherwise, his leadership prestige would be completely lost, and his throne might be in jeopardy. Therefore, the vicious cycle of escalating tensions between the US and China is destined to end in tragedy. The loser will not only be Xi Jinping personally, but may even be the very life of the red dynasty.
Warren Buffett famously said, "A tariff war is a war," and Trump's tariff war is a major war between the US and China. Therefore, amidst this fierce competition, entering the market during a crisis requires not only courage but also wisdom and luck.
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