Why is Donald Trump abandoning the trade war with China?
By David W. Rudin
Because China didn’t respond as expected.
Trump is used to small contractors terrified of him and his army of lawyers. He tells them he’ll pay half of what he contractually committed, and if they don’t like that they can see him in court. Unable to afford a prolonged court case, the contractors settle.
Countries are different. Not only did China refuse to back down, it responded with tariffs targeting states that are politically important to Trump. Probably their best shot was cutting off purchases of US soybeans, hitting Trump right in the heartland.
Far from getting him the love and adoration of his base, the initial skirmish in the trade war ended with his supporters questioning the fight.
In other words, Trump is learning that trade wars are NOT “very easy to win.”
Also, movement with North Korea means he needs China to keep up pressure on Kim. Plus they invested $500 million in a project in Indonesia that will benefit Trump personally (he’s planning a resort there). Combine the three factors and Trump really had no choice but to put the war on hold.
