The Trump administration may be beginning to favor the use of trade policy tools like tariffs to replace sanctions to compel foreign policy, researchers said on a podcast hosted by the Center for a New American Security last week.
Almost 20 trade groups and a handful of companies disagreed on how to ensure supply chain resilience -- many arguing that liberalizing trade with allies is crucial to reduce the likelihood of shortages, or weaponization, but others asserted that friendshoring will undermine domestic production already under stress.
A "snapshot" report just released by the Government Accountability Office reminded Congress that the GAO has studied -- and made recommendations -- on many aspects of how to manage economic competition with China, including providing more resources to the Committee on Foreign Investment in the United States, improving information sharing with companies to keep more counterfeits out of U.S. commerce, and improving the tariff exclusions process for steel and aluminum imports.
President Joe Biden came out against the purchase of U.S. Steel by Nippon Steel, saying in a post on X: "I told our steel workers I have their backs, and I meant it. U.S. Steel has been an iconic American company for more than a century -- it’s vital that it remain domestically owned and operated."
Japan, which suffered economic coercion from China earlier than any other country, is largely on the same page as the U.S. when it comes to supply chain resilience and restrictions on exports, but the two diverge in their attitudes about China's role in the global economy.