Antagonizing our friends around the world is a poor strategy for solving the heart of our trade problem our asymmetrical relationship with China. Xi Jinping suppresses purchasing power and social benefits for his country s citizens while subsidizing exports, allowing Chinese products to undercut those produced in other industrialized countries. China then uses the proceeds from artificially elevated export sales to direct investment to favored industries and new technologies while funding a massive military buildup.
In response to prior U.S. efforts to stem this flood, Chinese manufacturers have relocated significant production to countries such as Vietnam, whose cooperation the U.S. will need if it hopes to shut off this Chinese escape valve. Any way you look at it, imposing huge tariffs on every country with which the U.S. has a bilateral trade deficit makes no sense. We re left hoping that during the 90-day tariff pause business leaders can persuade Mr. Trump that his current course risks a punishing recession and weakening confidence in U.S. government debt.
