Donald Trump’s pick for Trade Representative Jameson Grier has proposed that the United States cut trade ties with China. Unlike others before him, Grier views China as an economic rival and a long-term threat, pushing for the United States to be free of commitments to the Asian nation. He believes the mice could hurt the US now, but it will benefit the country in the long run.
Grier is no stranger to the position he has been picked to occupy, having worked as a Chief of Staff for former United States Trade Representative Robert Lighthizer under Donald Trump. During that period, he was influential in creating and enforcing the tariffs that kickstarted the former trade war with China. Now, Grier is approaching his new job, with more experience and a tougher stance than before.
Tariff wars and trade relations
The administration’s moves are in place, with Trump announcing a 25% tariff on goods from Mexico, and Canada and a 10% tax on goods from China. Meanwhile, Grier is also plotting his first move, urging Congress to withdraw China’s Permanent Normal Trade Relations (PNTR) status. The country earned the status in 2000 after its World Trade Organization status was confirmed. Without the status, China would face a stricter tariff for bringing goods into the US.
The move would put China in the same category as North Korea, Cuba, and Belarus, with Grier noting that it will stop the US from playing in China’s rigged game. Other issues need solving. They are related to Chinese firms producing their goods in other countries to evade the tariffs. Grier wants that issue addressed, noting that if a Chinese company makes a product in another country or a company sources most of its spare parts from China, it would qualify for the tariff.
This new law will affect mostly automobiles, with most companies sourcing major parts from China. Grier also wants to protect American firms from China’s retaliatory practices, even going as far as proposing sanctions for companies that replace American firms blocked by China. He also wants Washington to be fully involved if other retaliatory practices are meted out against American firms in China.
Grier wants a self-reliant America
Grier’s proposal rests on cutting several ties with China, including access to technology on United States soil. He wants export control tightened for goods going into China from the US despite AI chips and military systems already being monitored. He will likely include aviation, transportation, and other sectors. This means China would have to source new tools and techs elsewhere while missing out on a chance to catch up with America.
Grier’s proposal does not stop at the United States borders, as he wants its allies like South Korea, the Netherlands, and others to enforce the same restrictions. The proposal will ensure that China is deprived of the needed tools and equipment it needs to compete with the US in several sectors. Grier’s proposal also includes asking Congress to block United States investors from funding firms in China, applying it to sectors that pose national threats.
The proposal, however, rests on the United States ramping up local manufacturing in the country, reducing its reliance on China. He also wants Congress to block sales of Chinese goods to the US government, while pushing for other non-trade related sanctions like human rights abuse and other national threats. The sanctions would leave Chinese firms in limbo while blocking their access to lucrative contracts from the United States government.