Trump admin planning to isolate China in tariff pressure campaign
President Donald Trump and his administration are reportedly planning a pressure campaign to convince U.S. trading partners to isolate China in exchange for reduced tariffs.
The administration is negotiating with more than 70 countries to secure commitments to limit their dealings with Beijing in exchange for reduced tariffs and barriers to trade, the Wall Street Journal reported, citing sources familiar with the discussions.
Trump administration officials will demand U.S. trade partners block Chinese shipping through their countries, prevent Chinese firms from setting up shop in their territories and commit to eliminating the flow of cheap Chinese industrial goods into their economies.
The administration intends to use the commitments, which could vary widely by country depending on the level of their entanglement with China, to force Beijing to the negotiating table. U.S. and Chinese officials have publicly discussed potential talks between Trump and Chinese President Xi Jinping over the past few months amid the escalating trade war.
Treasury Secretary Scott Bessent proposed the isolation strategy to Trump at Mar-a-Lago on April 6, according to the Journal. Bessent has been spearheading trade negotiations since Trump announced a 90-day pause on his reciprocal tariffs against most countries. The administration did not lift its levies on China.
The White House said Tuesday that China now faces up to a 245% tariff on imports to the United States “as a result of its retaliatory actions,” according to a fact sheet released to accompany Trump’s executive order launching an investigation into “the national security risks posed by U.S. reliance on imported processed critical minerals.”
Source: Foxbusiness
