The United States plans to persuade dozens of countries with which it is negotiating new trade agreements to limit their ties with China. In exchange for this, import taxes will not be increased.
One of the main supporters of this initiative is the US Treasury Secretary, Scott Bessent, who has already presented the plan to American President Donald Trump, as reported by The Wall Street Journal.
Donald Trump previously announced that over 70 countries are negotiating new trade agreements with the United States. However, the American administration has postponed the implementation of increased tariffs to allow time for negotiation with the countries involved.
The plan, supported by the US Treasury Secretary, includes several conditions for countries negotiating the reduction of tariffs imposed by the Trump administration:
- they will ban the transit of Chinese goods through their territory;
- they will not allow Chinese companies to register in their jurisdiction, so that Chinese producers cannot evade the increased tariffs imposed by the US;
- they will not "absorb" cheap Chinese industrial goods into their economies.
According to WSJ, the US Treasury Secretary believes that such measures will weaken China's economy, isolate it, and force it to make concessions in the trade war with the United States.
The Trump administration has imposed customs duties of 145% on Chinese goods in its trade war with China. Beijing responded proportionally, also increasing the tariffs imposed by the US.
T.D.