Tiktok videos of wholesale markets in China claiming to reveal the real price of luxury brand products have gone viral. One such video claims that the Hermès Kelly bag, worth $23,600, is being sold at one-tenth of its price for $478, and urges users not to pay for the brand logo. Another viral video claims that the $100 Lululemon yoga pants were being manufactured in two Chinese factories and sold for just $5 or $6. Another netizen claims to have access to manufacturers that make Louis Vuitton bags, and they can be sold for $50. The Independent reported that both Lululemon and Louis Vuitton denied finishing their products in China. These videos say it loud and clear: “Skip the middleman. Skip the tariffs. Come straight to the source—us.” Chinese consumers are having the last laugh.
After escalating the trade war with China, US President Donald Trump is pulling back with some soothing words for Beijing. Trump told reporters at the Oval Office on Thursday that he was not going to further raise tariffs on China: “I don’t want them to go higher because at a certain point you make it where people don’t buy.” The president also claimed that the Chinese have reached out to the US a number of times.
Trump had hit China with a 245 per cent tax on all imports, up from the previously announced 125 per cent. Chinese President Xi Jinping countered with a 125 per cent increase on American goods and also suspended the supplies of six rare earth mineral metals needed to sustain certain strategic industries. In short, trade between the US and China would have come to a halt causing pain to both American and Chinese consumers.
The Global Times, the Chinese government라이브 바카라 English language paper, quoting the commerce ministry spokesperson said that the tariffs on Chinese products did not make economic sense “except to further demonstrate how the US weaponises tariffs to coerce and bully others”. China라이브 바카라 commerce ministry, according to the newspaper, has maintained working-level communication with its US counterpart. China has, from the beginning, said it was open to negotiations. “The unilateral tariff hikes were initiated entirely by the US side, and it is up to the one who tied the bell to untie it,” China라이브 바카라 commerce ministry spokesperson, He Yongqian, said.
China will eventually sit down for talks at a time of its choosing. Xi will not jump to do Trump라이브 바카라 bidding and China is likely to take its time over agreeing to negotiation considering the insulting language used by Trump라이브 바카라 senior ministers. Vice President J. D. Vance had referred to Chinese as peasants. China does not take kindly to insults. Chinese leaders can never forget what they term as the century of humiliation, a period between 1839 and 1949, when large parts of the country was taken over by Westerners. Leaders from Mao Zedong to Xi remind people of that period and vow that never again will China face such humiliation at the hands of foreigners.
The trade war between the world라이브 바카라 number one and number two economic giants affects all countries. The 90-day pause on tariffs announced by Trump has given hope to many countries that they would be able to work out a trade deal with the US by the end of the deadline. But a China-US agreement will take much longer. Meanwhile, both countries will suffer.
“The biggest effect will be the erosion of confidence in American leadership and American reliability.”
According to experts, as many as 20 million Chinese workers could lose jobs, if exports come to a near halt. The trade in goods between the US and China was around $585 billion last year. Of this, America imported $440 billion worth of goods, while its exports to China were considerably less—at just $145 billion. The Chinese economy is fuelled by manufacturing units—big and small—that export most of their products to the US. Decoupling of the two giant economies will have devastating results for both countries in the short-term.
Much will depend on how much pain the system can take. In a democracy, where public opinion matters, people react quickly to rising prices. The economy and the price rise was a major factor for Trump winning the presidential elections. People believed that Trump, a business tycoon, would be able to deliver. But in typical Trumpian style, he used a sledge hammer to announce the new tariff regime without taking into account the consequences, leading to bloodbaths in the stock markets, not just in the US, but around the world. So much so that the chair of the Federal Reserve, Jerome Powell, cautioned that the central bank could face a challenging scenario of managing both a slowing economy and accelerated inflation, thanks to the government라이브 바카라 tariff announcements. This riled Trump, who had appointed Powell in his first term, and threatened to terminate his services. The Federal Reserve is an independent entity. Trump라이브 바카라 economic policies may have gone well with his supporters, but certainly not with independents. In a recent opinion poll, CNN reported that Trump라이브 바카라 popularity has plummeted to -22 among ordinary independent citizens. The president라이브 바카라 billionaire friends are also uneasy and they have said to have advised him to begin talks with China.
Analyst Nitin Pai of Takshashila Institution believes that Trump will make the first move. “It would appear that the US will blink first, as stock markets and bond markets respond negatively to trade wars. Consumer backlash and pressure from industrial and agricultural constituencies will push political vectors against Trump라이브 바카라 tariff offensive. At some point, the pressure will be stronger than what the White House can bear.’’ But he also points out that the world knows little of what actually happens inside the Communist state. “China is also under severe pressure. While nationalism and popular resentment of the US is bolstering Xi Jinping at the current time, a point might arrive where the Chinese economy suffers sufficient pain as to shake the leadership in Beijing. We can’t say for sure because the system is not transparent,’’ adds Pai.
When the world라이브 바카라 two foremost economic powers are at loggerheads, the effect will be felt by all countries. Governments the world over are watching with keen interest the final outcome of the trade war and hoping the US and China pull back and begin talks. India라이브 바카라 commerce ministry has flagged concerns about China, Vietnam, the US and other countries flooding India라이브 바카라 huge market as a dumping ground for their products.
“President Trump라이브 바카라 trade war could have very big effects. It could push the US economy into recession, put more downward pressure on the Wall Street, and push up the cost of debt. It could also damage the Chinese economy in the short-term and many others in the long-term, as cheap Chinese goods are redirected into other markets. But the biggest effect will be the erosion of confidence in American leadership and American reliability,” says Ian Hall, professor at Queensland라이브 바카라 Griffith University. Australia, which has close economic ties with China, is doubly concerned.
India, which is currently negotiating a bilateral trade deal with the US, is watching the US-China developments closely.
(With inputs from Rani Jana)
Seema Guha is a senior journalist covering foreign affairs
This article is part of 바카라라이브 바카라 May 01, 2025 issue 'Username Waqf' which looks at the Waqf Amendment Act of 2025, its implications, and how it is perceived by the Muslim community. It appeared in print as 'Hermès For All'.
