US makes move on trade war talks as pressure mounts ahead of midterm elections
Washington’s offer to restart negotiations comes as both sides are feeling the strain, and with Beijing in a weaker negotiating position
Washington has offered to restart negotiations with Beijing as the trade war escalates, a move analysts say reflects pressure on the White House ahead of critical midterm elections and a weaker Chinese negotiating position as its economy slows.
While no concrete details were revealed by either side, potential new talks would be aimed at staving off the next round of US$200 billion in punitive duties from the US expected this month – the largest tariff measure in the intensifying trade war so far – and US$60 billion in retaliatory tariffs from China. US President Donald Trump has warned he is willing to slap tariffs on all Chinese imports, worth US$500 billion, saying on Tuesday that his administration has “taken a very tough stand on China, I would say, to put it mildly”.
But analysts say the newest series of tariffs would be a particularly deep cut for both economies, and would likely come ahead of November midterm elections, with recent polls showing that the Republican Party may have trouble keeping its majority in the House of Representatives. The latest data from polling aggregator RealClearPolitics puts Democrats at a more than 8-point lead in a generic congressional vote for the House.
Christopher McNally, an adjunct senior fellow at the East-West Centre in Hawaii, said the Trump administration may seek a deal on the trade war before the elections, though he cautioned that the president could easily throw out any negotiated settlement if he felt it did not “help him politically or doesn’t go far enough, doesn’t make him look good enough”.