According to知情 sources cited by Bloomberg, the Trump administration is preparing to put pressure on various countries in negotiations over U.S. tariffs, urging them to limit trade with China. Dozens of countries are seeking relief from the historic tariffs imposed by President Trump. In return, the U.S. side will require these countries to take measures to restrict China's manufacturing power to ensure that Chinese companies cannot find ways to circumvent U.S. tariffs.

According to a person familiar with the process, Trump's senior economic advisors are discussing requiring representatives of other countries to impose so-called secondary tariffs on imports from certain countries closely related to China, essentially a form of monetary sanctions. It was also said that the U.S. hopes its trading partners will not absorb goods from China. Other concessions regarding China may also be put on the table.

According to a person with knowledge of the matter, Mexican officials expect the U.S. to request an increase in tariffs on electric vehicles imported from China into Mexico. The Mexican Ministry of Economy declined to comment. The White House did not immediately respond to requests for comment.

The Trump team is attempting to use long-term partners to blockade China and pressure it. It is unclear whether this strategy can achieve results; some foreign officials expressed skepticism about the possibility of reaching a tariff agreement when participating in early discussions with the U.S.

U.S. Treasury Secretary Besante is one of the most active supporters of this idea. After Trump announced last Wednesday that tariffs on approximately 60 trade partners other than China would be suspended for 90 days, Besante played a leading role in the negotiations.

In order for Trump's containment plan to succeed, it requires support from European and Asian countries, which have been reluctant to significantly reduce trade with China. Trump's decision to impose tariffs on both friends and foes has also caused some allies to no longer view the U.S. as a reliable ally.

At the same time, whether the U.S. can reach bilateral agreements with its trading partners on tariff levels is also a question. According to people familiar with the talks, little progress was made in resolving trade disputes during this week's discussions between the EU and the U.S., as Trump's advisors gave the impression that most of the proposed 20% "reciprocal" tariffs on the EU would not be canceled.

Besante warned the EU last week not to turn to China amid the global economic chaos triggered by Trump's tariffs, specifically pointing out that the Spanish government agreed with this approach, calling it "self-destructive." Spain's Minister of Economy, Trade, and Industry, Quilfo, refuted this claim, stating that Europe must maintain relations with all major powers in the world. Quilfo told reporters after meeting with Besante on Tuesday that China must be a "strategic partner" for the EU.

According to Politico News, reaching trade agreements with neighboring countries of China is part of a broader White House strategy to bring them to the negotiating table. The report states that as the U.S. and China face off in a fierce trade war, the current theory of the Trump administration is that reaching tariff agreements with Asian countries and dozens of others around the globe seeking to negotiate with the U.S. will isolate China, disrupt its supply chains, and potentially sever its ties with the rest of the world. This theory is circulating among Trump's allies and confirmed by a White House official.

The official said that the White House believes that businesses moving their manufacturing operations to the U.S. and the broader industry-based tariff strategy of the U.S. are key factors in pressuring China to cooperate. The official stated, "Once you see many countries - not just Southeast Asia or Asia, but countries around the world - willing to strike deals with the U.S., it puts pressure on China, hoping China will participate in negotiations because its economy depends on many of these countries around the world. I think once there is hope, reaching deals with these countries will put pressure on China."

The report points out that even those close to the White House who hope to see Trump succeed and China weakened are unsure if this strategy will work. Some believe that reaching deals with other countries contradicts Trump's broader "America First" trade policy, which aims to revive American manufacturing while using tariffs as leverage. Others argue that these deals are necessary compromises in the effort to re-shore manufacturing in the U.S.

A second White House official said, "The tough balance lies in that we can generate revenue through tariffs, but we want to pick which countries to engage in free trade with. We want it to appear that we are moving toward free trade, but we also like the income generated by tariffs."

Trump's allies also pointed out that China has been preparing for another trade war with the U.S. for years and highlighted measures taken by China to pressure the U.S., such as retaliatory tariffs and other bureaucratic obstacles.

Reaching agreements with Asian allies may take time, which could be too much for the jittery bond market to bear. Moreover, even if an agreement is reached, it does not guarantee an impact on China.

A person close to the White House said, "The theory is that getting all Asian countries except China to the negotiating table and incentivizing them with reduced tariffs will lead U.S. companies to leave China. Yes, this makes sense. It is already happening. But will this be enough to sway China? That's a big question."

Two different people close to the White House said that Trump, rather than a deputy, leads the U.S. government's strategy towards China, making it difficult to find someone outside the White House in some cases. Another person closely associated with the White House said, "This is one area where Trump takes sole responsibility. Unlike the first term, I don't think there are many or any dissenting voices overall." When asked who is leading the White House's negotiations with China, a third person close to the White House joked, "A junior staff member named Donald Trump."

Source: rfi

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