Beijing’s plan for Trump’s tariffs
Beijing is planning how to capitalize on anticipated US tariff hikes under a second Trump administration.
The crux: Chinese officials are reportedly weighing unilateral tariff cuts on imports from non-US trading partners.
ICYMI: Trump has stated that he plans to impose 60% tariffs on all Chinese imports – and at least 10% on imports from the rest of the world.
According to the WSJ:
- “He Lifeng, Xi’s economic czar, hinted in recent meetings with Western business leaders that Beijing is weighing “proactive” tariff cuts in various sectors to boost foreign investment and trade with Europe and other Asian countries.”
- “The sectors in focus include electrical and telecommunications equipment, as well as seafood and other agricultural products.”
Get smart: This would be a brilliant move.
- Lowering import duties would not only benefit the Chinese economy but would also buy China some global goodwill at a time when US trade policy takes a protectionist turn.
Get smarter: The first Trump presidency gave China a golden opportunity to undermine American alliances and position itself as the global leader.
- But Beijing blew it with Wolf Warrior diplomacy that alienated pretty much every Western country.
Our take: We're skeptical Beijing has learned enough from past missteps to take full advantage of Trump 2.0.