Carrot and stick approach: US moves towards new tariffs on China despite trade talks: WSJ

Omkar Godbole FXStreet Contributor

The Trump administration has likely adopted a carrot-and-stick approach to dealing with China.

On one hand, President Trump has approved relaunching of talks to scrap tariffs and on the other hand, the administration is moving closer this week to levying tariffs on nearly half of Chinese import, accordng to Wall Street Journal (WSJ).

Key quote (Source: WSJ)

"Twin administration initiatives-pursuing tariffs on $200 billion of Chinese goods while relaunching talks to scrap tariffs-underscore a split within the U.S. administration, with negotiators in the U.S. Treasury Department offering a carrot, while the office of the U.S. trade representative threatens with a stick, both with the approval of President Trump, according to people familiar with the administration's internal deliberations."

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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