President Trump is doubling down on his efforts to level the playing field on trade, including doubling the tariff rate on China.
Arlan Suderman with StoneX says China is a unique trade partner but notes the President has no time to waste.
“The thing to understand about China is they value relationship negotiations. You may have different values than I do, but if we have a relationship of respect, we can do business. So, President Trump focused on that during his first term, speaking very respectfully on Xi Jinping, and so, as a part of that Chinese culture, they like to negotiate face to face. But they kept dragging things out, and they forced Trump into 13 face-to-face negotiations, Trump and his team, and that drug it out for several years and bought time for China, and Trump’s saying, ‘This time, I don’t have that kind of time.’”
Suderman says Trump might also feel like he has the momentum right now. China’s economy is struggling far worse than it was in Trump’s first term, leaving them particularly vulnerable. Trump doubled their tariff rate to 20 percent this week after a previous 10 percent last month.
With port fees now lifted, economists believe that could help ease tensions. However, American Farm Bureau Federation (AFBF) economist Faith Parum said trade deals with smaller Asian countries are helping stabilize the ag economy.
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