Why Trump Should Skip Making a Trade Deal with China

President Trump is heading to China, but experts say his best move might be to come home empty-handed.

The past tells a troubling story. For over 30 years, American presidents have tried to make deals with China, hoping to change how the country does business. But China has repeatedly broken its promises. When President Clinton tried to link trade benefits to human rights improvements in 1994, China simply ignored him. When President Xi promised not to build military bases in disputed waters in 2015, China did it anyway.

Trump himself got burned before. In 2020, he made a deal where China promised to buy $200 billion worth of American products (goods like soybeans, oil, and manufactured items). China ended up buying less than 60% of what they promised.

Tariffs are working better than deals. Tariffs are taxes on imported goods that make foreign products more expensive. Since the U.S. started using tariffs against Chinese goods: • America's trade deficit (buying more from China than selling to them) has dropped by 50% • Chinese exports to the U.S. fell by $109 billion • Mexico has overtaken China as America's biggest trade partner

The bottom line: Instead of chasing another deal that China might break, Trump could achieve more by sticking with tariffs and focusing on strengthening America's own economy. Sometimes in negotiations, the best deal is the one you don't make.

This is an AI-generated summary. Read the original article at: https://www.marketwatch.com/story/trumps-best-china-trade-deal-is-the-one-he-doesnt-make-b54fe07f?mod=mw_rss_topstories