As per recent reports, President Donald Trump lately ordered increased tariffs on the long list of Chinese imported goods. Previously the rate was 10% and now it will increase to 25% during the beginning of 2019 unless and until the US can bring China to an agreement to new trade policies before this period. To add to this, Donald Trump left out all sorts of electronics products like smartphones and gadgets from this increased tariff. This clearly implies the fact that Trump doesn’t totally ignore the impact of tariff on the American consumers.
It is true about what Donald Trump feels about China that they have always taken undue advantage of global rules of trading. Their demand for the foreign companies to divulge their intellectual properties is pretty foolish. This needs to stop as soon as possible. But what should be the approach in order to stop all this?
Does this seem to be a rather irrational foreign policy?
People hoped all the way that the business negotiations skills of Donald Trump would help the economy in accomplishing various productive trade discussions but sadly enough, it didn’t occur in that way. Donald Trump could have easily assembled a mass of all the other top economies which too got damaged and tarnished by the policies of China and then he could have demanded that China changes its ways for the world. It is only then that better terms with Mexico, Canada and the EU could have been easily sought.
Rather than doing this, Trump turned his own partners and associated against the US. You need to have realistic demands and this is a vital part of negotiating. You can’t ever succeed when you ask your opponent to cut his own throat. If you take into account Xi Jinping, he has always been versatile about several things but still he is the leader of a Communist government over which he has enough command. China will never let go of their technology goals which has been embodied in the program called ‘Made in China’ and the same thing is true with all other countries.
This is going to be a dangerous game
Now you may think that the entire White House team is way less talented as one may think. But it can also be that if has got a totally different strategy than what you may think. There are few people who think that the real goal is to make American business avoid operating in China totally. In case this seems to be the actual goal, they are definitely towards a good start. However, this is not perfect for the American businesses or even for America. At the present moment, America is negotiating from a rather stronger position. Nevertheless, the economy is soaring and it can easily withstand the pain of increased tariffs.
So, in case this kind of trade war continues, it is definitely going to favor the US. We just hope that China reduces their abusive strategies and Trump calls off this hike in tariffs. There’s more to learn in the months to come.
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