In January, President Trump threatened to impose tariffs on Canada, Mexico, and China. He claimed these countries needed to do more to curb drug and migrant flows into the U.S. Canada and Mexico acted quickly, sending officials to Washington with evidence of their border control efforts. Canada appointed a “fentanyl czar” and increased resources to fight crime, while Mexico sent troops to the border and handed over cartel members to U.S. authorities. Because of their prompt responses, Trump paused tariffs on them for 30 days.
China, however, did not make similar moves. Trump believed they weren’t doing enough to stop the flow of fentanyl, so he imposed a 10% tariff on all Chinese imports starting February 4. He also planned to add another 10% tariff by March 4.
Trump’s approach to revamping U.S.-China trade contrasts sharply with China’s cautious strategy. They are hesitant and weighing their responses carefully. Some of Trump’s advisers have communicated with their Chinese counterparts, but a direct phone call between Trump and China’s leader, Xi Jinping, has yet to happen.
Chinese officials prefer to avoid initiating talks, worried about appearing desperate or making concessions without fully understanding the negotiating landscape. To gauge Trump’s intentions, they have engaged in discreet discussions and floated different deal ideas.
Experts note that the Chinese approach tends to be cautious. Michael Pillsbury, a China advisor, remarked on their wariness around hidden traps during negotiations. They’ve expressed a willingness to work together but seek reliable channels within the U.S. for communication and clarity on what a deal would entail.
After recent U.S. steps, like a memo proposing limits on investment, confusion mounted. Trump later contradicted this memo by expressing openness to Chinese investment, illustrating the mixed messages coming from his administration.
Myron Brilliant, a business advisor, echoed a common sentiment: the Chinese are listening and assessing their options but have not hit the panic button yet. They show a willingness to negotiate but want firm parameters and no preconditions attached to discussions.
A delegation from China, including former ambassador Cui Tiankai, visited Washington in late February. They expressed hope for an agreement and suggested ideas like increased purchases of American agricultural products and Chinese investments in the U.S.
During discussions, they asked for equal treatment and criticized the Biden administration’s “containment” measures. They warned that if U.S. tariffs were to increase, China might retract law enforcement efforts against drug trafficking, underscoring their economic struggles amid tariff threats.
Trump’s advisers indicate he is interested in a broad deal with Xi, encompassing significant purchases and cooperation on various global issues. Yet, Trump remains frustrated that China did not fulfill prior agreements for product purchases and views tariffs as a tool to gain leverage.
During a recent TV interview, Commerce Secretary Howard Lutnick claimed that China contributed to drug trafficking, stating they support the production of fentanyl close to the U.S. border. He urged for a halt to what he termed the “murder of Americans” due to drug overdoses.
So far, the tariffs Trump has threatened are similar to those he introduced previously, which remain in effect. Scott Kennedy, an expert in trade policy, suggested that these tariff levels might just be the beginning of what could come.
Beijing has responded to Trump’s earlier tariffs carefully. While they’ve imposed some tariffs of their own, they’ve signaled potential for more significant countermeasures if the trade tension ramps up.
The recent meetings also involved prominent figures within China’s political landscape exploring pathways for better communication. Previous Trump officials, including Jared Kushner, played key roles in managing such communications, and now there’s curiosity about how business leaders like Elon Musk might facilitate discussions.
Chinese diplomats have floated ideas for bilateral agreements, such as significant U.S. investments in electric vehicles and renewable energy, which could create numerous American jobs. These discussions include navigating U.S. national security concerns while fostering economic collaboration.
Additionally, the Chinese proposed increasing purchases of American goods like agricultural products and energy. They also hinted at cooperation on geopolitical issues, such as stabilizing currency markets and assisting with international conflicts.
However, given existing national security hesitations in the U.S., reaching an agreement could prove challenging. Analysts caution that if Trump continues to apply pressure through tariffs, it might deter China from making concessions. The window for reaching a collaborative solution may be closing as tensions rise.
Yun Sun, a scholar on U.S.-China relations, remarked on the missed opportunities for dialogue, urging that an extended delay could worsen feelings of hostility and complicate negotiations further.
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Protectionism (Trade),United States International Relations,International Trade and World Market,Customs (Tariff),Foreign Investments,Commerce Department,Trump, Donald J,Xi Jinping,China,United States
