On Wednesday, former President Donald Trump called in to CNBC and said something incredibly audacious from the White House. On the United States’ component of the trade war, he was unequivocal—telling me that he has no plans to reduce the current 145% import tariffs on China. This declaration comes just before an important meeting in Switzerland, where the future of such regulations will be decided. U.S. Treasury Secretary Scott Bessent will meet with his counterpart in China to address trade and economic issues.
When asked if he was open to reducing the steep tariffs to facilitate negotiations with China, Trump responded emphatically with a “no.” This unapologetic approach underscores the tumultuous relationship between these two countries. Seeing the strong hand, rightly or wrongly, Beijing certainly sees Trump’s forthcoming tariff increases as high-stakes bargaining chips ahead of the planned talks.
The meeting in Switzerland would occur just three days after what Trump said. This conversation comes on the heels of China’s official request for high-level talks with U.S. Treasury Secretary Janet Yellen. Both countries are set to tackle major trade topics, against a backdrop of soaring economic tensions.
In particular, Trump provided more detail on his disagreement with the tariffs, focusing on their fiscal impact before they were ever imposed. “We’ll see … we were losing a trillion dollars a year, now we’re not losing anything, you know? It’s the way I look at it,” he stated. His speech reinforces the long and often unchallenged myth of economic fortitude which he links to the current tariff system.
The former president’s comments reflect his administration’s strategy of using tariffs as a tool to negotiate better trade terms with China. Since these tariffs have gone into effect, Trump claims the U.S. has gone from losing billions of dollars. Today, he thinks the country is on an arc of stability and gain.
As the two countries get ready to meet again in Switzerland, experts are still doubting a desirable end state. We hope the upcoming meeting provides an opportunity for compromise between both sides. This is critically important, given the larger uncertainty and discord swirling about trade policy these days.
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