When U.S. President Donald Trump signed the document, historic tariff orders The individual who initiated the worldwide tariff conflict on April 2 might very well have wielded a pen manufactured in China.
Despite setting aside that specific pen, the accompanying documentation will predominantly go through processes involving equipment obtained from Chinese manufacturing facilities. These facilities currently encounter a combined American tariff of approximately 125 percent.
The irony highlights a more profound reality regarding the US-China trade The tariffs intended to penalize Beijing frequently end up impacting American consumers the most severely, all while not diminishing China’s control over common products. Those hit hardest by this are typically Americans who struggle the most with finding costlier substitutes since numerous items from China are essential day-to-day basics.
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US trade statistics highlight an alarming fact: approximately 85 percent of the pens and pencils in the United States originate from China. During 2022, American consumers spent $430 million on pens sourced from Chinese manufacturers. Notably, prominent brands like Bic and Paper Mate also depend on Chinese parts for their products.
The mountain of bureaucratic work triggered by the president's risky economic move will become significantly costlier following this week, with no viable alternatives apparent. China asserts dominance over 80 percent of the worldwide office supplies market.
It is not just the writing instruments. When Trump's deeply religious faithful go to church to pray for a trade war victory, the Bibles in their hands are most likely to have been printed... again in China!
Amity Printing Company in Nanjing, China is the world's largest Bible producer. Since 1987, it has printed over 200 million copies of "the good book", all for export. About half of these are estimated to be sold to the American market. According to US International Trade Commission data, atheist China accounts for 70 to 80 per cent of America's religious book imports.
Despite years of diversification efforts, one-third of the garlic cloves Americans consume, half of the cheap furniture in their homes, and nearly 80 per cent of their Christmas toys are still made in China. Even the wooden frames holding up Trump's august image decorating every government office are probably Chinese, as China supplies 70 per cent of photo frames in the US.
The list can go on and on. The fact is that China's dominance in these easily overlooked, small, but essential daily items is built on economies of scale and production efficiency that American factories - or those of any other country - struggle to match.
Trump's tariffs were designed to revive American manufacturing and reduce dependence on China. But in many areas, domestic manufacturers are simply non-existent. It will take years for them to set up production, rebuild the supply and distribution networks, and match China's scale and effectiveness.
No matter how many more times Trump signs off on a new round of duties on Chinese goods, the first result will be pricier pens and paper.
US Treasury Secretary Scott Bessent tried to shrug off the carnage in the financial markets after the tariffs announcement by implying that most affected people were wealthy, and that American workers - the president's key supporters - would only benefit.
"The top 10 per cent of Americans own 88 per cent of equities, the next 40 per cent own 12 per cent. The bottom 50 per cent have debts. They rent their homes. They have auto loans," he said in an interview with Tucker Carlson.
The reality is that while some rich folks may indeed have been burned in the recent market bloodbaths, most of them will survive and might even be able to recoup their losses later. The tariffs, particularly on China and other Asian countries, are going to affect the 50 per cent of American "have-nots" the most.
This is because China's dominance is particularly pronounced in small but indispensable daily necessities. The "have-yachts" could source their luxury products elsewhere, but the "have-nots" often have no choice but to suck up the tariff costs.
There's poetic justice in the fact that the tools Trump used to wage his trade war - pens, podiums, and promotional materials - were probably made by the very economy he sought to undermine. It's a reminder that in a globalised world, economic isolationism is easier said than done.
While tariffs might appear strong in theory, they frequently end up being an additional cost borne by typical American citizens. Unless the U.S. manages to revive its manufacturing sector or persuades buyers to accept higher costs for locally produced essential items, China’s dominance over common products won’t change, regardless of how many new tariff policies are implemented.
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The article initially appeared on the South China Morning Post (www.scmp.com), which is the premier source for news coverage of China and Asia.
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