Trump's tariff power play: A looming threat to China
The United States has "very big power" over China due to the ability to impose tariffs, and China does not want this. Trump noted in an interview with Fox News, however, that he would prefer not to have to use this power.
President Donald Trump stated in an interview with Fox News that he would prefer not to impose tariffs on China, reports Bloomberg. At the same time, he warns that the US is ready to undertake extensive actions against the world's second largest economy.
He emphasised that the United States has "very big power" over China due to the ability to impose tariffs, and China does not want this. However, Trump noted that he would prefer not to have to use this power. He stressed, however, that this is a "tremendous power" over China.
Chang Shu, the chief economist for Asia at Bloomberg, admits that "there’s a lot at stake for China, and the world."
It’s hard to know exactly what US President Donald Trump was getting at with his latest comments on China tariffs ... That said, it’s difficult to see Trump backing down from his tariff threats, Shu noted.
Trump often used tariff mechanisms as a means of pressure on both friends and opponents, and additional revenue from them was intended to support his domestic priorities.
As early as his second day in office, he threatened to impose 10 per cent tariffs on China starting 1st February for allowing America to be "flooded" with fentanyl. During the election campaign, the Republican proposed additional tariffs on China at about 60 per cent, which economists believe could decimate trade with the US, as China's economy is heavily dependent on exports.
