As US turns up heat on China, trade war moves beyond tariffs to new battlefronts
A lull in the trade dispute amid heightening anti-China rhetoric suggests a shift in strategy, as the Trump administration weighs economic and military sanctions
On September 17, US President Donald Trump vowed to tax every single import coming from China if it retaliated against his tariffs on US$200 billion in Chinese goods.
Beijing struck back, as expected, with tariffs on US$60 billion worth of American imports, yet there has been no sign that Trump is preparing to make good on his threat, despite a passing remark on Monday that “we could go US$267 billion more”.
The lull in what has otherwise been an incendiary and fast-moving trade war suggests a directional shift in US strategy, analysts said, as the administration weighs other non-tariff options that would avoid domestic resistance ahead of pivotal midterm elections.
These include military action, including sanctions on the Chinese military and an increase in naval exercises around China’s territorial waters; economic sanctions to counter religious suppression; and a rise in anti-China rhetoric, including accusations of Chinese interference in US elections.
Speaking on Thursday about countering what he called China’s “whole-of-government approach” to influencing US affairs, US Vice-President Mike Pence said the United States would “continue to stand strong for our security and our economy”, but did not offer any indication that the administration was preparing to move on tariffs on all Chinese imports.
Voter sentiment ahead of the November 6 midterm elections could be a crucial reason tariffs aren’t being increased further, observers said.
“There’s no question that domestic politics has to be very, very top of mind for the administration in the run-up to the midterm elections,” said Josh Green, co-founder and CEO of Panjiva, a company that provides data on global trade.
