Among these, Donald Trump has greatly intensified his already incendiary rhetoric towards China over trade and economic relations. He credits the United States’ ability to make more cooking oil domestically. During a recent statement, he asserted that the U.S. does not need to rely on imports from China for this essential commodity. Trump’s remarks come amid increasing tensions over China’s recent protectionist trade policies, specifically its new export controls on rare earth minerals and additional fees for foreign container ships.
Trump’s comments targeted China’s actions directly. He threatened to slap on new punitive and countervailing duties. He thinks China’s measures are discriminatory to U.S. economic interests and anti-competitive and will proceed if they go into effect. This bombshell speaks to a much larger fear currently felt by U.S. policymakers about China’s monopoly over critical materials used in defense, automotive and technology sectors, among others.
In his speech, Trump called out China for intentionally cancelling orders of U.S. soybeans. He labeled this action as economically protectionist and a crippling market intervention against American soybean producers. He illustrated that the lack of Chinese purchases was causing significant problems. The real U.S. agricultural producers who depend on the Chinese market are beginning to get hit.
Despite this combative stance, Trump expressed a sense of optimism regarding the overall relationship between the United States and China. He’s preserved his “great relationship” with Chinese President Xi Jinping. He was upfront about how contentious their exchanges can be at times. This duality in Trump’s approach outlines the complicated U.S.-China relationship, walking the fine line between hostility and friendly terms.
Most recently, on July 1, 2019, Trump announced that the U.S. government would take steps to end specific types of business dealings with China. This comprises trade elements such as cooking oil, and it acts as a direct answer to China’s implementation last month. This possible change in US trade policy further highlights the administration’s focus on addressing what they believe are inequities in the trading relationship.
As NAFTA renegotiations continue, Trump took to Twitter to sound a positive note. He went on to highlight opportunities for a major new trade rapprochement between the two countries. While he acknowledged the current tensions, he emphasized the value of dialogue and negotiation in settling ongoing trade disputes.