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President-Elect Donald Trump’s appointment for US Trade Representative has signaled that the US will pursue a more aggressive trade policy and reduce reliance on China over economic and national security concerns.
Let’s bring you up to speed: Just before Thanksgiving, President-Elect Donald Trump nominated Jamieson Greer as the next US Trade Representative. Greer, a seasoned international trade lawyer and former Air Force officer, served as the chief of staff to Robert Lighthizer during Trump’s first term. In that role, he was pivotal in major trade negotiations, including crafting the United States-Mexico-Canada Agreement (USMCA) and implementing tariffs during the US-China trade war. Known for his tough stance on Beijing, Greer was instrumental in shaping strategies to counter China’s economic practices and advocated for policies aimed at revitalizing American manufacturing and reducing reliance on foreign supply chains.
Decoupling from China: Roughly five months ago, Greer testified on Capitol Hill about the need for “strategic decoupling” from China to protect US economic and national security interests. He argued that decades of engagement with China have not only failed to yield the expected financial benefits but have also actively undermined American industries and technological leadership. Greer told lawmakers that the US must decouple, which would include revoking China’s permanent normal trade relations status, imposing stricter tariffs, enhancing export controls on critical technologies, and implementing outbound investment restrictions to curb the flow of US capital into sectors vital to China’s strategic ambitions.
When pressed by some Democrats about the economic damage this could bring to Americans, he acknowledged the potential for short-term economic pain and insisted that the long-term risks of inaction far outweigh the challenges.
Warnings from Trump: President-Elect Donald Trump has warned that his administration will reintroduce aggressive tariffs on Chinese imports, signaling a return to the hardline trade policies that defined his first term. During his previous presidency, Trump initiated a trade war with China, imposing tariffs on hundreds of billions of dollars worth of Chinese goods to address what he called unfair trade practices and intellectual property theft. These measures aimed to pressure China into structural reforms while encouraging the return of manufacturing jobs to the United States.
The trade war ultimately resulted in a partial resolution with the signing of the “Phase One” trade deal in January 2020, but it left many underlying issues unresolved. Under the agreement, China pledged to increase purchases of US goods and services by $200 billion over two years, including agricultural products, energy, and manufactured goods, while the US reduced some tariffs but maintained others.
China ultimately failed to fully meet its purchasing commitments, which they blame because of the economic disruptions caused by the COVID-19 pandemic. Despite this agreement, the core issues driving the trade conflict—such as intellectual property theft, forced technology transfers, and China’s state subsidies—were not addressed.
