Trump Tariffs ‘Unlikely to Change’ China’s 'Abusive' Trade Behavior, Report Says

Though the Trump administration’s plan to impose Trade Act Section 301 tariffs of 25 percent on Chinese imports “may have gotten China’s attention, they’re unlikely to change China’s conduct -- and will cause significant collateral damage in the process,” a June 19 Progressive Policy Institute report said. The duties, though applied to “Chinese-origin” products, “would be paid by Americans and impose serious costs on the U.S. economy,” it said. A “smarter strategy” to “confront China’s mercantilism” would be for the U.S. “to work more closely with its trade partners” to curb the allegedly “abusive” trade behavior, the report said. “China’s unfair policies and practices seriously threaten innovative businesses in many countries, and they -- and their governments -- can be key allies in pushing back.” But it’s difficult to build a coalition against China when the administration “needlessly antagonizes allies,” as it did when it imposed steel and aluminum tariffs against its allies, it said. The U.S. also needs to “speak with a single voice” in “focused, results-oriented” trade negotiations with China, the report said. The administration “should designate a single, high-level official to negotiate with China about core trade issues related to China’s unfair innovation practices,” it said. “This official should also actively seek cooperation from allies on those issues.”