Macroscope | Is Donald Trump’s trade war bent on prolonging conflict with China rather than resolving differences?

Neal Kimberley says the US’ recent trade war moves against China indicate that it is more interested in protracted antagonism than finding solutions

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US President Donald Trump said in his book The Art of the Deal that he “understands the Chinese mind”. By taking the tariff approach, however, he is pushing China into digging in its heels. Photo: Bloomberg

Published: 10:00am, 1 Aug 2018Updated: 11:37am, 1 Aug 2018

When it comes to differences on trade, it’s almost as if Washington is trying to push China away from the negotiating table rather than tempting Beijing to talk. Washington’s blunt application of tariffs, in an attempt to force Beijing to make concessions, is likely to have the opposite effect. Or perhaps that’s Washington’s intention.

Pointing to last week’s apparent progress on resolving trade differences between the United States and the European Union, White House National Economic Director Larry Kudlow said on Friday that it vindicated US President Donald Trump’s view that “being tough and aggressive, and yes, using tariffs where required, can get you to the negotiating table”.

In truth, the application of trade tariffs to try and gain leverage in a hoped-for trade negotiation mirrors stratagems previously embraced by President Trump in his career as a property developer. Trump’s 1987 book, The Art of the Deal, stresses the importance of “Leverage. Don’t make deals without it”.

Yet, in the same book, Trump also states that “I've read hundreds of books about China over the decades. I know the Chinese. I've made a lot of money with the Chinese. I understand the Chinese mind.”

With that last quote in mind, it might seem odd that the US has opted for trade tariffs. The US administration must know that this approach forces China to dig its heels in. It would be anathema to China to even allow the impression to form that, in the face of tariffs, Beijing is prepared to kowtow to Washington over trade.