 "US President Donald Trump attends a bilateral meeting with China's President Xi Jinping during the G20 leaders summit in Osaka, Japan, June 29, 2019. File image/ Reuters")
The Trump administration is planning to use ongoing tariff negotiations to pressure US trading partners to limit their dealings with China, The Wall Street Journal reported on Tuesday, citing individuals familiar with the discussions.
According to the report, US officials intend to engage with more than 70 countries to request that they disallow China from routing goods through their territories and prevent Chinese firms from establishing operations there, in order to circumvent US tariffs.
The administration’s strategy hinges on extracting commitments from trade partners in exchange for the removal of trade and tariff barriers currently imposed by the United States. This move aims to isolate the Chinese economy further and weaken Beijing’s position ahead of a potential meeting between President Donald Trump and Chinese President Xi Jinping.
Sources told the WSJ that officials have already begun discussions with several countries regarding this plan. The goal is to tighten the economic noose around China, which is already grappling with financial challenges, thereby reducing its options and forcing it to return to the negotiating table.
When asked about Panama’s decision to withdraw from China’s Belt and Road Initiative, President Trump hinted at the approach, suggesting he might consider compelling nations to choose between aligning with the US or with China.
As part of this broader effort, the administration has temporarily suspended reciprocal tariffs on approximately 70 countries, ranging from 10% to 50%. However, China has been excluded from this pause, with Chinese imports facing a punitive 145% tariff.