Global Economy

Trump may have made it more difficult for the US to 'win' its trade war with China


The latest escalation in a tariff fight between the U.S. and China has made it “very difficult” for the two economic giants to reach a trade deal that’ll let President Donald Trump claim victory, experts said.

The U.S. just after midnight ET on Friday increased tariffs on $200 billion of Chinese goods to 25% from 10%. China responded immediately, saying it would take countermeasures against the U.S. The latest hike in levies came after Trump turned up the rhetorical heat against China starting Sunday and accused Beijing of reneging on parts of a developing agreement.

Representatives from both countries are meeting in Washington this week to discuss trade. After the latest developments, however, a resolution in the coming weeks is “very difficult” to imagine, said Steve Okun, a trade expert and senior advisor at consultancy McLarty Associates.

“For the U.S. to win, for Trump to declare victory, he has to show that there’s a substantial change to what (China) does when it comes to intellectual property, when it comes to cyber theft, when it comes to forced technology transfers,” Okun told CNBC’s “Street Signs” just minutes before the latest tariff hike.

“Now, some of what, maybe much of what, the U.S. wants is in China’s interests. But politically, it’s very difficult for President Xi (Jinping) to be seen as giving into what the U.S. is demanding of him,” he added.



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