U.S. tariffs on Chinese goods are going up. Wait, President Donald Trump says he’s having second thoughts. No, no, Trump may actually raise tariffs even higher. He’s also demanding that U.S. companies leave China. Well, maybe not.
The communications on China from Trump and his administration since late last week – erratic, sometimes contradictory – are complicating their high-stakes talks with Beijing and elevating the risks to the fragile global economy.
The messaging has been confusing not just for Chinese officials as they formulate a response to whatever stance the administration is taking. It’s also a problem for American businesses. Trump alarmed U.S. companies on Friday by threatening to invoke his presidential authority to order them out of China – a market of 1.4 billion where many American companies have spent decades establishing operations and building relationships with suppliers and customers.
The shifting positions and threats could eventually weaken the U.S. and world economies by leaving businesses paralyzed by uncertainty over whether and where to situate factories, buy supplies and sell products.
“We are on Mr. Trump’s Wild Ride,” said Jay Foreman, CEO of Basic Fun!, a toy company in Boca Raton, Florida, that imports from China. “Never have we ever experienced such an unhinged practice of governance. It’s out of control and outrageous.”