United States President Donald Trump intensifies pressure on China by threatening to impose 155% tariffs on Chinese products, in yet another chapter in trade tensions between the world’s two largest economies. “Soybeans currently create the conditions for this new round of tariffs”, stated Fernanda Magnotta, in an analysis in CNN 360°when describing the strategy used by Trump.
Trump’s strategy follows a pattern known as “art of the deal”, a negotiation method that he himself described in his 1980s book, Magnotta explained. The approach is to create controlled instability to increase your bargaining power in trade negotiations.
Multiple tension fronts
The current dispute involves a combination of commercial, exchange rate and technological elements. Issues related to exchange rate manipulation and disputes over technology production and innovation are the main points of friction between the two nations.
The economic coercion employed by Trump reflects characteristics of his foreign policy: unilateralism, media performance and focus on the domestic audience. This approach falls within the context of attempted reindustrialization in the United States, where China is often portrayed as responsible for the loss of American jobs. “President Trump needs to give answers to a society that is very dissatisfied, including with the economy,” says Magnotta.
Trade tensions come at a time of , with one that has lasted two weeks, causing significant national impact. Some analysts suggest that the focus on external issues may be an attempt to divert attention from domestic problems.
