Trump warns tariffs are a powerful tool against China
The United States has "very big power" over China due to its ability to impose tariffs, and China does not want this. In an interview with Fox News, Trump noted, however, that he would prefer not to have to use this power.
President Donald Trump mentioned in an interview with Fox News that he would rather avoid imposing tariffs on China, as reported by Bloomberg. Nevertheless, he cautions that the U.S. is prepared to take extensive measures against the world's second-largest economy.
Trump emphasized that the United States possesses "very big power" over China because of its tariff capabilities, which China seeks to avoid. However, he noted that he would prefer not to have to use this power. He pointed out that this is a "tremendous power" over China.
Chang Shu, the chief economist for Asia at Bloomberg, acknowledges 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 has often used tariffs as a way to exert pressure on both allies and adversaries, with the additional revenue intended to support his domestic agenda.
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 of about 60 percent, which economists believe could severely affect trade with the U.S., as China's economy heavily relies on exports.
