The Trump administration remains determined to double down on its China trade strategy by escalating tariffs from 10% to as much as 25% on consumer goods, electronics and automobiles by the end of the year. The strategy aims to further reduce America's $500 billion in annual imports from China.
The big picture: While this may cost China as many as 2 to 3 million jobs, it's not clear that it will reduce China’s overall exports. In fact, Trump’s trade war is exacerbating the trade deficit. Perhaps most troublingly for long-term U.S. economic growth, it's steering Asian countries — and their billions of consumers — toward non–U.S. trading partners.