u.s. holds tariff leverage over china, trump implies caution
The United States possesses "very significant power" over China due to its ability to impose tariffs, and China does not desire this. Trump noted in an interview with Fox News, however, that he would prefer not to resort to this measure.
President Donald Trump stated in an interview with Fox News that he would prefer not to impose tariffs on China, Bloomberg reports. At the same time, he warns that the U.S. is prepared to undertake extensive actions against the world's second-largest economy.
He emphasized that the United States has "very significant power" over China due to the ability to impose tariffs, and China does not want this. However, Trump remarked that he would prefer not to have to use this. He stressed, however, that it is a "huge advantage" over China.
Chang Shu, the chief economist for Asia at Bloomberg, admits that "the stakes are high for China and the world."
It's hard to say exactly what U.S. President Donald Trump meant in his latest comments about tariffs on China... Nevertheless, it's hard to imagine Trump backing down from his tariff threats, Shu noted.
Trump often employed tariff mechanisms as a means of pressure on both allies and adversaries, and the additional revenue from them was intended to support his domestic priorities.
As early as his second day in office, he threatened to impose 10-percent tariffs on China starting February 1st for allowing America to be "flooded" with fentanyl. During the election campaign, the Republican proposed additional tariffs on China at about 60 percent, which economists believe could severely impact trade with the U.S., as China's economy is heavily reliant on exports.
