Former US President Donald Trump is reportedly considering a far more aggressive trade stance towards China if he secures a second term in the White House.
According to a detailed report by The Washington Post on Saturday, Trump has been confiding in his advisors about imposing hefty tariffs on Chinese imports, going so far as discussing the possibility of a flat 60% tariff on all goods from China.
Experts warn that if such a decision is implemented, the global supply chain and economies worldwide could suffer even more than during the trade war initiated by Trump in 2018.
Erica York, a senior economist at the Tax Foundation, expressed her concerns, stating, "The 2018 to 2019 trade war was immensely damaging, and this would go so far beyond that it’s hard to even compare to that. This threatens to upend and fragment global trade to an extent we haven’t seen in centuries."
Trump, who is currently leading the Republican Party’s presidential primary, has been vocal about reversing China's status as a most favored nation for trade.
He argued that the United States has the world's lowest import levies, emphasizing the importance of these tariffs to the country's budget. The former president, during campaign events, has promised a tougher stance against China and proposed slashing corporate taxes to boost earnings.
While the current duties on China remain largely in place under President Joe Biden, Trump's potential plans could lead to severe consequences for global economies.
A report by the US-China Business Council and Oxford Economics estimated that ending the permanent normal trade relations with China could cost the US economy a staggering $1.6 trillion.
Trump's previous trade policies during his first term added approximately $8 trillion to the national debt through increased spending and tax cuts. Despite criticism, Trump boasted about confronting Communist China like no other administration in history, claiming to have brought in hundreds of billions of dollars directly into the US Treasury.
The US-China trade relationship is of significant importance, with total imports from China reaching around $550 billion in 2022, according to Washington Post data. The current average tariff rate on these goods is approximately 12%, with Trump having imposed 25% tariffs on about $150 billion in goods and an additional 7.5% on another $100 billion.
