Trump's Winners Vs Losers Approach To Trade Is A Winning Strategy For China
Bloomberg Businessweek|March 12, 2018

U.S. steel and aluminum need help, but tariffs are a Game of Thrones approach to the problem

Peter Coy
Trump's Winners Vs Losers Approach To Trade Is A Winning Strategy For China

Gary Cohn had one of the toughest jobs in Washington: restraining an impulsive president from waging a trade war he’s been itching to fight. Now that Cohn is leaving as director of Trump’s National Economic Council (page 37), the way is clear for the president to slap hefty tariffs on steel and aluminum imports from around the world. Trump also has a freer hand to punish China for its alleged theft of intellectual property. The U.S. is weighing restrictions on Chinese investments and tariffs on a broad range of Chinese imports, people familiar with the matter told Bloomberg News on March 6.

Trump and the nationalists who have his ear, such as Commerce Secretary Wilbur Ross and trade adviser Peter Navarro, have a point. The U.S. steel and aluminum industries really have been devastated by unfair Chinese competition. China has begun closing some of its steel mills under international pressure, but its production capacity remains twice as high as it was in 2006, the year the country issued the State Council Notice Promoting Structural Adjustment for Overcapacity. The pattern with aluminum is similar.

Trump and his advisers are also correct that economic strength is a matter of national security—and that right now China plays that game much more effectively than the U.S. does. China routinely forces foreign companies to turn over their intellectual property—the crown jewels of any corporation—as the price for doing business in the country. The Made in China 2025 project aims to develop domestic sources for a wide array of advanced technologies, something that would reduce its dependence on potential adversaries such as the U.S. and Japan. The 2018 National Defense Strategy document prepared by the Pentagon accuses China and Russia of “undermining the international order from within.”

This story is from the March 12, 2018 edition of Bloomberg Businessweek.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

This story is from the March 12, 2018 edition of Bloomberg Businessweek.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

MORE STORIES FROM BLOOMBERG BUSINESSWEEKView All
Instagram's Founders Say It's Time for a New Social App
Bloomberg Businessweek US

Instagram's Founders Say It's Time for a New Social App

The rise of AI and the fall of Twitter could create opportunities for upstarts

time-read
4 mins  |
March 13, 2023
Running in Circles
Bloomberg Businessweek US

Running in Circles

A subscription running shoe program aims to fight footwear waste

time-read
3 mins  |
March 20 - 27, 2023
What I Learned Working at a Hawaiien Mega-Resort
Bloomberg Businessweek US

What I Learned Working at a Hawaiien Mega-Resort

Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.

time-read
10 mins  |
March 20 - 27, 2023
How Noma Will Blossom In Kyoto
Bloomberg Businessweek US

How Noma Will Blossom In Kyoto

The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking

time-read
3 mins  |
March 20 - 27, 2023
The Last-Mover Problem
Bloomberg Businessweek US

The Last-Mover Problem

A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps

time-read
10+ mins  |
March 20 - 27, 2023
Tick Tock, TikTok
Bloomberg Businessweek US

Tick Tock, TikTok

The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban

time-read
10+ mins  |
March 20 - 27, 2023
Cleaner Clothing Dye, Made From Bacteria
Bloomberg Businessweek US

Cleaner Clothing Dye, Made From Bacteria

A UK company produces colors with less water than conventional methods and no toxic chemicals

time-read
3 mins  |
March 20 - 27, 2023
Pumping Heat in Hamburg
Bloomberg Businessweek US

Pumping Heat in Hamburg

The German port city plans to store hot water underground and bring it up to heat homes in the winter

time-read
3 mins  |
March 20 - 27, 2023
Sustainability: Calamari's Climate Edge
Bloomberg Businessweek US

Sustainability: Calamari's Climate Edge

Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment

time-read
4 mins  |
March 20 - 27, 2023
New Money, New Problems
Bloomberg Businessweek US

New Money, New Problems

In Naples, an influx of wealthy is displacing out-of-towners lower-income workers

time-read
4 mins  |
March 20 - 27, 2023