In a marked shift from his campaign rhetoric, President Donald Trump has indicated that while his administration holds the power to impose steep tariffs on China, he views the threat of such measures as a strategic tool rather than a course of action to be immediately implemented. “We have one very big power over China, and that’s tariffs, and they don’t want them, and I’d rather not have to use it. But it’s a tremendous power over China,” Trump said when asked about the possibility of a deal with Chinese President Xi Jinping involving trade and Taiwan.
On the campaign trail, Trump frequently touted his willingness to impose tariffs as high as 60% on Chinese imports to counter what he called “unfair trade practices.” However, since taking office on Monday, his administration has signaled a more cautious approach. Trump announced a 10% tariff on all Chinese imports could begin as early as February 1, citing concerns about fentanyl shipments from China reaching the United States via Mexico and Canada.
Broader Tariff Threats Extend Beyond China
The president’s remarks come amidst broader tariff threats targeting Canada, Mexico, and the European Union. Financial markets and trade groups momentarily exhaled relief on Tuesday after Trump refrained from immediately imposing tariffs as promised during his campaign. However, his comments later that day reaffirmed his administration’s intent to pursue aggressive trade measures.
Trump has set a February 1 deadline for 25% tariffs on Canada and Mexico, citing the need for punitive duties to address trade imbalances and illegal fentanyl trafficking. Similarly, the president’s rhetoric against the European Union remained unrelenting. “The European Union is very, very bad to us,” Trump stated, reiterating his view that tariffs are the only path to achieving fairness.
Trade Reviews Underway
Trump signed a broad trade memorandum directing federal agencies to conduct comprehensive reviews of key trade issues by April 1. These include analyses of persistent U.S. trade deficits, unfair trade practices, and currency manipulation by partner countries, including China. The memorandum seeks recommendations for remedies, such as a “global supplemental tariff” and adjustments to the $800 de minimis duty-free exemption for low-value shipments, which has been criticized for facilitating the import of illicit fentanyl precursor chemicals.
The reviews create a window for resolving internal disagreements within Trump’s cabinet over the scope and intensity of the proposed tariff measures. Reports suggest that some cabinet members are urging caution, while others advocate for a hardline approach consistent with Trump’s campaign promises.
China Calls for Dialogue
China has responded with calls for continued communication to manage differences and expand mutually beneficial cooperation. “China is willing to maintain communication with the U.S. to properly handle differences and promote stable and sustainable ties,” the Chinese foreign ministry said.
Talking about Trump’s remarks of tariffs posing a tremendous power over China, Chinese foreign ministry spokesperson Mao Ning remarked, “Trade and economic cooperation between China and the US is mutually beneficial. Differences and frictions need to be handled through dialogue and consultation. Trade and tariff wars have no winners and are in the interest of no one, still less the world.”
Trump’s emphasis on tariffs as a negotiating tool underscores his administration’s strategic approach to trade policy. By holding the threat of tariffs over China, the president appears to be leveraging economic pressure to extract concessions without immediately disrupting the global trade landscape. This calculated shift, however, leaves the door open for sweeping trade measures should negotiations falter.
Manbilas Singh is a talented writer and journalist who focuses on the finer details in every story and values integrity above everything. A self-proclaimed sleuth, he strives to expose the fine print behind seemingly mundane activities and aims to uncover the truth that is hidden from the general public. In his time away from work, he is a music aficionado and a nerd who revels in video & board games, books and Formula 1.
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