Trump’s tariff investigation ‘bluff’ will not work on China, analysts warn
Beijing has grown wise to the US president’s ‘art of the deal’ tactics and will not be fazed by the new Section 301 investigations, analysts say
The United States’ decision to launch Section 301 investigations into alleged unfair trade practices by China and several other economies – which could allow Washington to reimpose higher tariffs – is a “bluff” designed to give US President Donald Trump some perceived leverage ahead of his expected trip to China, analysts said.
But the threat is unlikely to work on Beijing, which has grown used to the president’s “art of the deal” tactics, they added.
“Trump’s move before his China trip is calculated to appeal to his domestic base ahead of the midterm elections with the message: ‘I’m going to Beijing with investigations and leverage and won’t compromise,’” said Fu Weigang, president of the Shanghai Institute of Finance and Law, a private think tank.
“China knows this is a result of US domestic politics, so it’s no surprise. Chinese exporters have been on the receiving end of such tactics for years, but they have become more resilient.”