US Plans Tariff Negotiations to Isolate China, Report Says

The United States is reportedly strategizing to leverage tariff negotiations with global trading partners in an effort to isolate China economically. This plan has been discussed among US officials and potential ally nations, according to a Wall Street Journal report.

President Donald Trump, who initially imposed reciprocal tariffs on all global trading partners on April 2, later suspended these tariffs for a 90-day period. The administration’s new strategy aims to limit these countries’ economic dealings with China, effectively pushing for a collective effort to marginalize the Chinese economy in the financial arena.

The Wall Street Journal, citing sources familiar with the discussions, indicated that the Trump administration is looking to engage in tariff negotiations with approximately 70 countries. Officials are expected to request that these nations prevent Chinese goods from transiting through their territories and discourage the establishment of Chinese companies within their borders to evade US tariffs.

This approach is designed to extract commitments from US trade partners to isolate China further in exchange for the removal of certain trade and tariff barriers imposed by the US government. The Trump administration hopes such measures will weaken China’s financial standing, which is already facing significant challenges, and compel Beijing to negotiate from a position of disadvantage in future talks between Trump and Chinese President Xi Jinping.

When asked about Panama’s recent decision not to renew its participation in China’s Belt and Road Initiative, Trump hinted at this broader strategic framework, suggesting he would encourage countries to choose between aligning with the US or China.

The Trump administration has implemented a 90-day moratorium on reciprocal tariffs affecting around 70 countries, with rates ranging from 10% to 50%. Notably, Beijing is excluded from this suspension, facing a substantial 145% tariff on its imports to the US.