When Liu He, Chinese President Xi Jinping’s top economic adviser, came to Washington in late February, he was expected to make arrangements for restarting trade talks that President Donald Trump had put on ice.
But just as Liu arrived, the Trump administration announced global steel and aluminum tariffs aimed at punishing China for what Washington says is its overproduction of steel that hurts U.S. steel makers. The announcement came a day ahead of a meeting planned with Trump’s economic point men, Treasury Secretary Steve Mnuchin and then White House adviser Gary Cohn.
Pessimistic Trump officials had said the Liu meeting would probably go nowhere. “People expect that whatever the Chinese offer it will be insufficient,” a White House official told Reuters just hours ahead of the meeting.
The timing of the announcement, whether deliberately aimed at embarrassing Liu or not, was emblematic of the Trump administration’s more confrontational approach to what the United States has long viewed as China’s unfair trade practices.
It was the opening salvo in a pattern of escalation that continued this week as Trump slapped first $50 billion in tariffs on China and then said he would seek $100 billion more after Beijing struck back.
The rapid tit-for-tat escalation, which has brought the world’s two biggest economies to the edge of a trade war, is being driven by anti-China economist Peter Navarro and U.S trade negotiator Robert Lighthizer, who cut his teeth in trade deals with Japan in the 1980s.