The ongoing trade war between the US and China is escalating. Now, with the trade war deepening, President Donald Trump is intensifying his crackdown on Beijing. In an increasingly complicated environment, the President seems unsure how to use his most potent weapon—the threat of tariffs—to blunt this multifaceted fight. His approach has created a lot of fear and panic among American allies. Today, they are asking themselves if they should support the U.S. in offsetting China’s expanding clout.
Now, the Trump administration has released its proposed list of Chinese goods to be hit with tariffs. This first move is to reign in China. This strategy has come without its bumps in the road. While President Trump has targeted China, he has directed some of his toughest tariffs at Mexico, complicating his relationships with neighboring countries. How he treats both friends and foes deserves this bigger, open question. Little is explained by way of American allies’ motivations for siding with the U.S. in this trade conflict.
In recent statements, President Trump acknowledged the stakes involved in this conflict, stating, “I always say it was formed to really do damage to the United States in trade.” While his administration has recognized this as a challenge, it still doesn’t have a coherent strategy to face down Chinese President Xi Jinping. On the other hand, Xi is unbending in his course.
China has made it clear that it values its relationship with the United States, as stated by Karoline Leavitt, who noted, “You’ll have to talk to our allies who are reaching out to us. The phones are ringing off of the hooks. They have made it very clear they need the United States of America, they need our markets, they need our consumer base.” This heavy reliance on one another highlights both the complexity of the no-longer “trade war” relationship and the opportunity that exists to negotiate.
Observers note that Trump’s confrontational tactics may conflict with his “America first” mantra, raising questions about the overall effectiveness of his approach. In addition, the long-held belief that a unified North American trading bloc could serve as a counterbalance to China’s economic power has gained renewed interest. Recent missteps, from remarks disparaging — and even threatening — some of our most loyal allies, have made it harder to believe that this could happen.
The Trump administration is belatedly being forced to reconsider this approach and create real leverage on Xi Jinping. Almost every expert has recommended forming an allied front to combat China’s predatory trade practices. Jason Furman, former chairman of the Council of Economic Advisers under the Obama administration is on board with this. He’s convinced that if we work together as allies, we can achieve great things.
