In February, former President Donald Trump announced his intention to implement a tough stance on trade with China and other countries engaging in what he termed as trade abuses. At a rally in South Carolina, Trump emphasized his strategy of imposing reciprocal tariffs on countries that levy tariffs on the US, stating, 'It’s called you screw us, and we screw you.'
Trump proposed the 'Trump Reciprocal Trade Act,' which would involve matching any tariffs imposed on the US with identical tariffs on the respective countries. This approach, according to the former president, aimed to pressure other nations into dropping their tariffs.
As part of his broader plan to boost domestic employment, Trump outlined his 'America First' trade agenda, which involved setting baseline tariffs on a wide range of foreign goods. He argued that this move would lead to reduced taxes for Americans as tariffs increased. Additionally, Trump proposed a four-year strategy to phase out essential imports from China and prevent further Chinese investment in the US.
In a bid to further address trade imbalances, Trump hinted at the possibility of imposing tariffs of up to 60% on all Chinese imports if he were to be reelected. During a meeting with GOP lawmakers, he even suggested the replacement of federal income taxes with high tariffs as a means of revenue generation.
Trump's focus on China extended to national security concerns, with plans to restrict Chinese ownership of critical US infrastructure in sectors such as energy, technology, telecommunications, and natural resources. He emphasized the link between economic security and national security, indicating a willingness to compel the Chinese to divest from holdings that posed risks to the country.
