This week has been punctuated with confusion and turmoil in the administration’s trade war with China. President Donald Trump is already deep in the weeds of international trade. To make it a reality, he needs to negotiate a deal with China within the next 90 days. The Bipartisan Policy Center has highlighted this increasing strain. These negotiations are serious and high-stakes. In doing so, they highlight the importance of aligning U.S. trade policies with what’s good for the domestic economy and global markets.
As the Bipartisan Policy Center has recently identified, U.S. trade policy is one of the foremost drivers of economic insecurity. These challenges extend well past America’s borders. Ever since the start of Trump’s administration, talks have been on the rise. From Treasury Secretary Scott Bessent’s first public report that over 75 world leaders have called President — seeking to strike deals and break trade concessions. Yet these overtures have so far done little to assuage fears that America managed to lose its most important allies in the process.
Trump’s tariff strategy has been widely criticized, focusing largely on the issues of legality and the expected cost to American consumers. The Tax Foundation estimates that a 10% universal tariff would increase American families’ costs by $125 billion annually. On average, families would experience an increase of $1,253 in its first year. This second increase is particularly alarming, as many economists have expressed concern that lower-income Americans will be among those hit hardest by these newly imposed tariffs. Yet the administration’s ambition to lower costs for consumers directly contradicts the real-world impact of increasing prices through additional trade barriers.
These warning signs have failed to deter Trump’s continued pursuit of the dunk. He blames the current trade dispute not on China, but on those past U.S. leaders. As for why it’s happening, he contends that past administrations failed to address the root causes. This view is indicative of a larger story that attempts to shift blame and recast his administration’s strategy as necessary.
The president’s proposed tariffs would raise enough for half-tariff, one-quarter tariff, at best. The Tax Foundation calculates a 10% universal tariff would raise approximately $2 trillion over the next ten years. That revenue could go a long way towards paying for key domestic priorities. It calls into question the long-term sustainability of this policy and the negative impact it would have on consumer purchasing power.
Trump’s administration has faced unprecedented challenges. The unpredictability of his erratic tariff policies has led many to doubt their effectiveness. The capriciousness of US trade policy, which adds to the chaotic business environment, makes investment from abroad and at home difficult if not impossible.
Second, the Bipartisan Policy Center recently cautioned that U.S. trade difficulties exacerbate our economic malaise at home. These challenges pose dilemmas for our international partners. The clock is ticking for the Trump administration to get a strong deal done with China. Most analysts agree that this deal is key to stabilizing the U.S. and global economies.