President Trump Gets Tough on China with Tariffs
Last week, President Trump enacted reciprocal tariffs of up to 50% on roughly 90 countries around the world in a bold move to restructure international trade to reduce the United States’ trade deficit and to recapture industries that had been lured away by unfair trade practices. One week later, the president announced a 90-day pause on reciprocal tariffs as countries began coming to the negotiating table to address his concerns. One notable exception to the pause on reciprocal tariffs? China.
President Trump Sends a Strong Message on China
While President Trump paused reciprocal tariffs on every other country and dropped tariffs down to the minimum 10% rate that he has instituted for all trading partners, the president sent a strong message to China for its unwillingness to come to terms on top of a long history of deceptive trade practices and pushing synthetic opioids like fentanyl to the United States, leading to a tragic loss of American lives.
Rather than pausing reciprocal tariffs on China, President Trump used his statutory authority to impose 125% tariffs on Chinese imports in addition to 20% tariffs that he had imposed earlier in his term, bringing total tariffs on Chinese goods to 145%.
Additionally, the president last week announced that as of May 2nd he would close a loophole that allowed low-cost goods from China to be imported into the United States with no duties, leading to the rapid growth of Chinese retailers like Shein and Temu. Originally announced at a rate of 30% of value or $25 per item for imported goods under $800, President Trump this week increased the tariff to 90% of value or $75 per item. The Protecting America Initiative has advocated for ending this de minimis tariff exemption.
Taken together, these policies show that President Trump is drawing a clear line in the sand in demanding concessions from China and negotiating a favorable outcome for the United States.
The President Can Get Tougher on China and Protect Americans at the Same Time
President Trump has shown a firm hand in negotiating with China, but there are still options on the table for the president to get tougher on China by looking to remove other exemptions like the de minimis exemption. For example, published alongside President Trump’s executive order on reciprocal tariffs is a list of goods exempt from additional tariffs that includes a chemical that is essential to American agriculture – glyphosate. Unfortunately, a tariff exemption for Chinese-made agricultural products undermines American agricultural manufacturers and exposes our food supply to Chinese chemicals. Ending this exemption would be a win for President Trump and a win for American farming. It would cut China off from being able to control the chemicals in our food and ensure that critical task is for American companies only.
The Protecting America Initiative Will Continue to Work to Curb CCP Influence
As President Trump continues shining a light on China and many of its practices that undermine the safety and sovereignty of the United States, the Protecting America Initiative will work alongside the president, congress, and states to address the ongoing threat posed by the Chinese Communist Party (CCP). Just this week, PAI released a federal policy blueprint on how to protect America from Communist China and will work proudly with policymakers to ensure a safer future.