The US flag flies over a container ship unloading it’s cargo from Asia, at the Port of Long Beach, California on August 1, 2019. – President Donald Trump announced August 1 that he will hit China with punitive tariffs on another $300 billion in
In the trade negotiations with China, America doesn’t seem to have a clear direction of what it wants to accomplish in the end.
“A big part of the problem with the U.S. China trade negotiations is that there are multiple agendas inside the Trump administration,” says Ted Bauman, senior analyst and economist at Banyan Hill Publishing. “The hawkish groups want to try to isolate China and force it to change its political and economic systems. The pragmatists just want to eliminate barriers to free trade and to get the Chinese to stop stealing intellectual property and subsidizing their exporters.”
What about Main Street America? “More broadly, I don’t think “America” is all that interested in changing the Chinese system — simply because there are different interest groups involved,” Bauman says.
But America wants to remind China who is “number one,” according to Deric Scott, senior analyst and Vice President of Metals.com.
“The US has the advantage of being the global reserve currency with the most gold reserves and the most formidable military,” he says. “As China seeks to bill itself as the next great superpower, the US seems determined to remind them that they are still number two, which to many respects, points to this trade war not coming to a full resolution regardless of who