“The White House says it has the upper hand in its trade war with China. Its actions suggest otherwise,” Politico reports.
“Top administration officials spent the weekend trying to defend a carve-out of consumer electronics from the astronomical 145 percent tariffs it levied on China last week. The carve-out was neither an exemption nor a policy rollback, the White House argued, because those electronics are still subject to a separate 20 percent tariff on China and some electronic components could face sector-specific tariffs in the future.”
“But to some White House allies, the exceptions are indicative of the relatively weak position the administration is in as it wages a trade war with China, which has spent years making preparations for an escalation with the U.S. on trade. The carve-outs also reveal the conundrum facing the administration: The U.S. is imposing new tariffs on Chinese goods in an attempt to move manufacturing back to the U.S., but those tariffs are particularly painful for U.S. manufacturers because they are currently so dependent on Chinese parts.”
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