Trump’s Trade Threats Won’t Bring a China Deal Closer
Tariffs have been the wrong weapon from the start, and they’re not getting any more effective.
It’ll only get harder as Trump enters campaign mode.
Photographer: Saul Loeb/AFP/Getty Images
China’s leaders took a while to realize what close observers of Donald Trump have long known: The U.S. president is a terrible negotiator. Global investors seem to be catching on as well. Stocks plunged on Monday as investors weighed the consequences of an escalating conflict over trade.
Trump has said that the U.S. will impose a 10% tariff on an additional $300 billion worth of Chinese goods on Sept. 1, unless China starts acceding to his demands. If he follows through, the president will have levied tariffs on virtually all imports from China, including toys, smartphones and other consumer goods that had previously been spared. China has promised to retaliate if the new measures go forward. The government reportedly told state-owned enterprises to suspend imports of U.S. agricultural products and on Monday allowed the yuan to weaken below 7 to the dollar for the first time in more than a decade.