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China Trade: President Trump Is Trapping Himself
['Derek Scissors', 'Audrye Wong', 'Zack Cooper']
American Enterprise Institute – AEI
If there’s a hard cap on China tariffs, it could be a welcome source of certainty, regardless of justification.
Stabilization would turn on whether a cap on China tariffs means analogous limits on other countries.
In terms of conventional trade, Chinese overcapacity is the single biggest distortion of the global economy and biggest threat to the American goal of resilient supply chains.
The solution is to ultimately tariff China much more highly, a solution which may have been killed off by a remarkably foolish promise.
It will of course be legally challenged, as nearly all Trump tariffs have been.