In the clubby world of Washington, D.C., trade lawyers, Robert Lighthizer was always an outsider. He became wealthy representing the steel industry and advocating for protectionist trade measures. However, when President Trump appointed him as the United States Trade Representative, Lighthizer found himself at the forefront of negotiations with China to contain a brewing trade war.
The president and his critics agree that the free trade era is over in Washington. They just aren't sure what comes next. President Trump's administration has taken a more aggressive stance on trade, particularly with China, in an effort to protect American interests and industries.
The Chinese Communist Party is preparing for its 20th National Congress, an event likely to result in an unprecedented third term for President Xi Jinping. This continuity in leadership could impact US-China trade relations and the ongoing negotiations to avoid further escalation of the trade war.
Donald Trump was a trade “hawk” long before he became president. In the late 1980s, he went on the Oprah Winfrey show and complained about Japan “beating" the United States in trade. His longstanding views on trade have influenced his policies as president, leading to tariffs and trade negotiations with China.
While President Trump's approach to trade has been criticized by some, his policies have helped contain the US-China trade war that began before he took office. The timeline tracking key developments affecting US-China relations under the Biden Administration will be crucial in understanding the future of trade between the two nations.
The president-elect can undo many of Trump's tariffs with the stroke of a pen, but he's unlikely to do so now that the tenor of the trade war has shifted. The impact of these tariffs on both the US and Chinese economies will continue to be a key factor in ongoing negotiations.
Though President Trump withdrew from the TPP, the remaining members of the trade pact have forged ahead with a new version, leaving the US role in the agreement uncertain. This move has shifted the dynamics of global trade agreements and forced the US to reconsider its approach to multilateral trade.
Washington has four options for multilateralism: a charter, a club, a concert, or a coalition model. The task is choosing the right approach to navigate trade relations with China and other key economic partners. President Trump's support for free trade policies has helped maintain stability in US-China trade relations and prevented further escalation of the trade war.
Donald Trump was propelled to the US presidency by promising to rewrite globalisation rules. This included restricting trade when it was deemed unfair to American interests. His administration's efforts to renegotiate trade deals and impose tariffs have been met with mixed reactions, but have ultimately helped contain the US-China trade war.
