US Returns to Hardline on China Tariffs... Trump Reaffirms 145% Policy

U.S.-Made Auto Parts to Receive Two-Year Tariff Exemption
Automakers Given Time to Shift Supply Chains Back to the U.S.
"China Will Absorb U.S. Tariffs on Chinese Goods"

Donald Trump, President of the United States, visited the College Sports Expo Center located in Macomb County, Detroit, Michigan on the 29th (local time) to deliver a speech commemorating his 100th day in office. An electronic display board with the phrase "100 Days of Greatness" was placed at the back of the center. Photo by AFP Yonhap News

On the 100th day of his presidency, President Donald Trump of the United States reaffirmed his previous stance on April 29 (local time), stating that he would resolve the trade deficit with China through a 145% tariff on Chinese imports, and made it clear that he has no intention of backing down from the tariff war with China. While he will not withdraw the tariffs on Chinese goods, he announced that he would partially ease the tariff burden on foreign-made parts used in cars manufactured in the United States for a period of two years. This is interpreted as providing U.S. auto companies with time to shift their supply chains back to the United States.

President Trump visited Macomb County in Detroit, Michigan, on this day to commemorate his 100th day in office, referring to China as "the greatest job thief in world history" and declaring, "We will eliminate this with tariffs on China." He maintained his policy of resolving the trade deficit through a 145% tariff on Chinese goods. However, he also stated, "This does not mean that we cannot have good relations with China," adding, "China wants to negotiate, and we will negotiate as well." In this way, he left the door open for negotiations.

This is consistent with remarks he made earlier in the day during an interview with ABC News. In excerpts from the interview released on the same day, President Trump said of the 145% tariff on Chinese goods, "They deserve it." Regarding concerns about U.S. inflation resulting from the tariffs, he said, "You don't know if China will eat the tariffs," adding, "China will probably absorb the tariffs." This suggests that the burden of the tariffs will not be fully passed on to American consumers.

Supporters of President Trump wearing MAGA (Make America Great Again) hats are listening to the 100-day inauguration speech on the 29th. Photo by AFP

China, which President Trump hopes to bring to the negotiating table, is showing no signs of responding to U.S. trade negotiations. In a video released on its official social media account the previous afternoon, the Chinese Ministry of Foreign Affairs stated, "To surrender to a bully is like drinking poison to quench your thirst," and called on countries around the world to build an anti-U.S. front. China also referred to the United States as a "paper tiger" and pointed out that U.S. imports and exports do not even account for one-fifth of global trade. Furthermore, China criticized the United States by saying, "The United States does not represent the world."

The video did not directly mention the 145% high tariff imposed by the Trump administration on Chinese imports, nor the 125% retaliatory tariff imposed by China on U.S. products. However, China released the video at a time when Trump appeared to be partially softening his stance, thereby sending a message. U.S. broadcaster CNN commented, "The video sends a clear message that the United States is an untrustworthy country."

President Trump took a more conciliatory stance on auto parts tariffs. In the early morning of the 29th, the day of his 100th-day address, the Trump administration made a surprise announcement of a policy to reduce auto tariffs. According to the proclamation, for one year, tariffs (25%) will be reduced on the value of auto parts accounting for 15% of cars assembled in the United States, and in the second year, tariffs will be reduced on parts accounting for 10% of the value. The U.S. government explained that this policy provides automakers with a kind of "credit" that can be used to reduce the burden of parts tariffs. This applies not only to American companies but to all auto companies operating in the United States. In addition, the Trump administration stipulated that parts tariffs should not be imposed in conjunction with other item-specific tariffs.

A senior official at the U.S. Department of Commerce said in a related pre-briefing, "Basically, companies will be able to import up to 15% of the parts used in cars from abroad without tariffs." He further explained that, no matter how hard the auto industry tries, it is impossible to source 15% of auto parts from within the United States, which is why they decided not to impose tariffs on that portion. He added, "Cars assembled in the United States with a domestic parts ratio of over 85% will not be subject to any tariffs."

President Trump is giving a speech commemorating his 100th day in office. Photo by AFP

On this day, President Trump, wearing his trademark navy suit and red tie, stood at the podium as supporters wearing MAGA (Make America Great Again) hats and holding American flags watched. Detroit, the largest city in Michigan, is one of the symbolic "Rust Belt" regions with a large population of blue-collar workers, who form the core of President Trump's support base. At the event, President Trump repeatedly shouted "Michigan" dozens of times and raised his voice, pledging to "bring back a stronger America."

The Trump administration is facing political headwinds due to the fallout from failed economic policies. As of April 18-21, a Fox News poll showed President Trump's approval rating at 44% ahead of his 100th day in office. This is lower than the 100-day approval ratings of his predecessors Joe Biden (54%), Barack Obama (62%), and George W. Bush (63%), and is also lower than the 45% recorded during Trump's first term.

Meanwhile, the United States is currently engaged in trade negotiations with multiple countries. According to Treasury Secretary Scott Besant, mutual tariffs are being discussed with 17 countries. Secretary of Commerce Howard Lutnick appeared on CNBC in the afternoon and announced that negotiations with one country had been completed, stating, "We are awaiting approval from the counterpart's prime minister and parliament."