In a pointed and symbolic move, China has revived a 1987 speech by former U.S. President Ronald Reagan to criticize the reciprocal tariffs imposed by President Donald Trump’s administration. Amid escalating U.S.-China trade tensions, the Chinese Embassy in the United States posted the decades-old clip on X (formerly Twitter), highlighting Reagan’s warnings about the long-term dangers of protectionist trade policies.
“Ronald Reagan vs. #tariffs: 1987 speech finds new relevance in 2025.”
The video was strategically shared just days after Trump imposed new tariffs on Chinese imports, triggering a retaliatory response from Beijing and threatening to reignite a full-blown trade war between the world’s two largest economies.
Ronald Reagan vs. #tariffs : 1987 speech finds new relevance in 2025pic.twitter.com/CuAMw1eQXN
— Chinese Embassy in US (@ChineseEmbinUS) April 7, 2025
Reagan’s Warning Against Tariffs Resurfaces
In the resurfaced 1987 video, Reagan, a Republican icon and the 40th President of the United States (1981–1989), lays out the potential economic pitfalls of using tariffs as a tool of protectionism. Reading from prepared remarks, he explains how such policies may seem patriotic at first but ultimately backfire:
“Imposing tariffs on foreign imports may work for a while… but soon, homegrown industries start relying on government protection. They stop competing, stop innovating, and lose their edge in the world market.”
He goes on to warn that retaliatory tariffs from other countries are inevitable.
“The result is more and more tariffs, higher and higher trade barriers, and less and less competition. Eventually, markets shrink and collapse, businesses shut down, and millions lose their jobs.”
For China, sharing this video now is a subtle yet powerful rebuttal to the aggressive tariff strategy currently pursued by President Trump, reinforcing its position that unilateral tariff hikes are not only economically damaging but also historically condemned by respected American leaders.
The Current U.S.-China Tariff War: A Quick Recap
The renewed tariff skirmish began during President Trump’s fiery ‘Liberation Day’ speech on April 2, where he announced a 34% tariff on all U.S. imports from China, citing long-term trade imbalances and fentanyl trafficking concerns. This was on top of a 20% tariff announced earlier this year.
In retaliation, China imposed its own 34% tariffs on a list of U.S. goods, which are set to take effect on April 10.
Not backing down, Trump issued another threat on Truth Social:
“If China does not withdraw its 34% increase above their already long-term trading abuses by tomorrow, April 8, 2025, the United States will impose ADDITIONAL tariffs on China of 50%, effective April 9.”
He further declared that any talks with Chinese officials would be canceled if Beijing failed to comply, while negotiations with other nations would begin immediately.
This escalation risks not only derailing bilateral economic ties but also causing global market uncertainty, as both countries are major players in global trade.
China’s Response: Defiance and Diplomacy
In an official statement on April 5, China condemned Trump’s tariff threats, calling them:
“Unilateralism, protectionism, and economic bullying.”
Beijing reiterated that “pressuring and threatening” is not the way forward, vowing to defend its sovereignty, economic interests, and development rights.
“China has taken and will continue to take resolute measures to safeguard its sovereignty, security, and development interests,” the statement read.
“China-U.S. economic relations should be mutually beneficial and win-win in nature.”
Additionally, China emphasized that development is a universal right, not an “exclusive privilege of a few,” reinforcing its opposition to what it views as discriminatory and self-serving economic policies.
Symbolism Behind Sharing the Reagan Video
The strategic decision to share a Reagan-era video holds layered significance:
- Republican Legacy vs. Current Republican Leadership:
By showcasing Reagan’s disapproval of tariffs, China is drawing a contrast between Trump’s protectionist approach and the more globalist, free-market vision of Reagan, who is still revered within the Republican Party. - Soft Power and Public Messaging:
Sharing the video allows China to subtly shift the global narrative — from being seen as the aggressor in a trade war to taking the moral high ground by citing American ideals and warnings. - Appeal to Common Sense Economics:
Reagan’s speech outlines a logical progression of economic damage caused by protectionism — something China hopes will resonate not just with U.S. policymakers, but also with American voters and businesses likely to feel the pinch from retaliatory tariffs.
Reactions Across the Globe
The Reagan video quickly went viral, drawing mixed reactions online. Economists, political analysts, and business leaders have weighed in, with many noting that the resurgence of Reagan’s pro-trade rhetoric stands in stark contrast to Trump’s hardline stance.
- U.S. tech and auto companies worry that higher tariffs will increase costs and reduce competitiveness.
- Global markets experienced sharp rebounds after the initial crash caused by Trump’s tariff shock — indicating volatility driven by policy uncertainty.
- Indian and European industries are closely watching the fallout, especially as the U.S. begins to pressure other trade partners, including India and the EU, to cut their own import tariffs.
What’s at Stake?
The implications of this renewed U.S.-China tariff war are vast:
- Higher consumer prices in both nations
- Disruption in global supply chains
- Delays in technological imports and exports
- Strain on bilateral diplomatic relations
- Reduced investor confidence
As both countries hold firm, the rest of the world may become collateral damage in what could become the largest trade standoff in recent memory.
Conclusion: A 1987 Warning for 2025
By sharing Ronald Reagan’s decades-old warning against tariffs, China has made a strong statement not with a press conference, but with history.
As tariff tensions between the U.S. and China intensify, the question remains: Will policymakers in Washington heed Reagan’s advice, or will the world witness another round of economic brinkmanship with global consequences?
Only time will tell if this nod to history will influence current decisions but one thing is clear: the ghost of Reagan now hovers over the 2025 trade debate.
