Such a risky negotiation tactic can work well in business, but does it make sense in deals such as complex and weighty as trade negotiations? Retaliation follows one day later, when China announces new tariffs on US goods worth US$60 billion and cancels trade talks with the US. The most effective way for China to gain leverage in these and all following trade negotiations would be to focus on domestic trade. These duties are about twice as high as the tariffs Trump has imposed in the current dispute, with only the antidumping tariffs averaging 151.5 percent. Meeting Japanese President Abe in Tokyo today, announcing a trade deal with Japan was exactly the right thing to do at the right time.

Source: Forbes May 27, 2019 08:21 UTC