Trump Seeks To Close All Bilateral Deficits Of US, Says Brahma Chellaney
He warned that China’s economic engine cannot afford a widening trade war with the US at this point. "This is just an opening salvo—more is to come," he said.
Trump is seeking to close all bilateral deficits of the US, according to Brahma Chellaney, Strategic Affairs Expert. "He views tariffs as a game-changing instrument to fill America’s ‘coffers’ and bring manufacturing back to the US," Chellaney told NDTV Profit.
He pointed out that Trump’s tariff strategy is not coincidental, as it primarily targets countries that serve as major outsourcing hubs for American manufacturing.
"Trump is doing exactly what he promised in his inaugural address—that the US will impose tariffs and taxes on foreign countries to enrich American citizens," he said.
Trump Vs Xi Ping
Chellaney noted that Trump's most significant tariff action has been against China. In his second term, Trump aims to send a strong warning to Beijing by imposing an additional 10% tariff.
"This places Xi Jinping’s regime in a predicament. Any retaliatory measures from China will likely invite further rounds of American tariffs. However, doing nothing could make Xi Jinping appear weak at home," he said.
He warned that China’s economic engine cannot afford a widening trade war with the US at this point. "This is just an opening salvo—more is to come," he said.
Chellaney pointed out that China’s response has been limited—Beijing has taken the matter to the World Trade Organisation, or WTO, but with little hope of resolution.
"The WTO is a toothless organisation and cannot effectively address China's concerns over Trump’s latest punitive actions. This highlights how limited China's leverage is in countering Trump’s tariff strategy," he said.
China is bracing for more US actions as its economy relies heavily on exports. "Last year, China’s export trade reached nearly $1 trillion. Trump’s tariffs will erode this reliance and co-opt US allies into the trade war," he explained.
Chellaney highlighted that China's economic growth engine cannot afford a widening trade war with the US currently. He further warned that this will have an international spillover.
"The 10% new US tariffs on China will not be lifted. But the 25% tariffs on Canada and Mexico are negotiable," he said.
America's Expectations From India
"Trump has made clear to India to do two things: boost its imports of American oil and petroleum products. The second is to buy more American weapons," he said.
"India's growing trade surplus with the US clearly puts it in the crosshairs of Trump's tariff strategy. Under PM Modi, India has been running a trade deficit with China. But, with Trump's intent to close all of America's bilateral trade deficits, India might finally resort to raising tariffs on imports from China. This avalanche of imports from China is undermining India's manufacturing capabilities," he said.
