Trump looks to tariff-hit friends to bail him out
This should be a clear sign to our allies that we must work together against China, says key aide Bessent
President Donald Trump has called on allies to help the United States win the “trade war” against China, despite kicking them around like a geopolitical football. In the past 10 months since returning to the White House, he has seriously weakened global alliances.
He has fired verbal missiles at Europe, partners in the Asia-Pacific, and close neighbors Canada and Mexico, while imposing tough tariffs on a vast array of imports. Now that Trump is in trouble tackling Chinese leader Xi Jinping, he needs their economic muscle.
But he has a problem after alienating America’s friends. Leaders from Berlin to Bangkok may be reluctant to rally around the stars and stripes.
“The US right now is an incredibly unreliable partner to anyone in the world, and I don’t know how we are going to get back to being reliable,” Jason Furman, who chaired the Council of Economic Advisers in the Obama administration, told the CNN network today.
Friends or enemies?
- Neither. In Trump’s chaos-fueled universe, transactional deals and winning are the cornerstones of his diplomatic diaspora.
- It works up to a point, but not against China’s manufacturing might and its stranglehold on the building blocks of advanced technology.
Delve deeper: Instead, simmering trade tensions have escalated into full-blown conflict after Beijing tightened controls on the export of rare earths, which are crucial for today’s high-tech world. In response, Trump has threatened 100% tariffs on all Chinese exports.
Once again [this] demonstrates the risk of being dependent on [China].
Scott Bessent, US Treasury SecretarY
What that means: “Foreign companies now need permission to export products that derive as little as 0.1% of their value from China-sourced rare earths,” Marina Yue Zhang, of the University of Technology Sydney, wrote for The Conversation.
Between the lines: Beijing has a vice-like grip on the global supply chain of these critical minerals. It controls 60% of mining and more than 90% of refining worldwide, according to the International Energy Agency.
Bottom line: The US is dependent on China for around 70% of its rare earth imports, according to the American Geological Survey, as reported by the CNBC network.
Big picture: “[Beijing’s] actions have once again demonstrated the risk of being dependent on them, on rare earth,” US Treasury Secretary Scott Bessent said.
Looking for partners: “This should be a clear sign to our allies that we must work together, and work together we will,” he added at a media briefing in Washington earlier this week.
China Factor comment: Still, state-run Chinese media continue to parrot the ruling Communist Party line that the US has not learned its “lesson” and must show “respect.” That will go down like a red Party flag to a bull in MAGA land and Trump’s White House.