The Chinese embassy in the US has published a video from Ronald Reagan's speech in social media. The US President in 1987 pointed to the disastrous effects of commercial wars. This is one of the reactions to the threat of imposing further duties to China by Donald Trump.
“Ronald Reagan versus duties: The speech of 1987 takes on a new meaning in 2025” – the embassy wrote China in social media, placing a film from the radio message of the republican president.
Ronald Reagan about the duties
– When someone says: let's apply duties on foreign imports, it looks as if they were patriotic, protecting American products and workplaces. And sometimes it works for a short time – said Reagan. He warned, however, that protectionism leads to less efficiency and competitiveness of native companies in the long run, and then to “something even worse”.
– High duties inevitably lead to retaliation from foreign countries and causing fierce commercial wars. The result is more and more duties, higher trade barriers and less and less competition. So soon because of artificially inflated prices by customs, which co -finance ineffectiveness and bad management, people stop buying. Then the worst thing happens: markets are shrinking and falling, companies and industries are closing, and millions of people lose their jobs – said Reagan.
He recalled an example of the 1930s, when the duties introduced during the great crisis contributed to the deepening of the economic apathy.
– The memory of everything that happened in the 1930s meant that when I came to Washington, I decided to save the Americans of patronist legislation, which destroys prosperity – said the US president.
Reagan and duty imposed on Japan
As the Internet users noted, Reagan's message from April 1987 was delivered after he applied 100 % duties on Japanese semiconductors. The US president then explained that this matter is a “exceptional case” related to the violation of the trade agreement by the USA with the USA. The duties were later withdrawn, a year after they were applied.
Placing a film with Reagan by the communist authorities of China was a reaction to Monday's threat Donald Trump Additional application 50 % Customs duties on products from China in response to Chinese retaliation duties, which were a response to previously announced duties of Trump, also in the amount of 34 percent.
Trump also announced the breakup of commercial talks with Beijing. If China does not withdraw their duties, and the White House will meet these threats, from Wednesday the basic duty for almost all goods from China will be 104 percent.
Source of the main photo: Shutterstock