Trump getting ready to take trade steps on China
President Trump is considering an aggressive step against China over its theft of U.S. intellectual property and China's other industrial policies that harm American companies. An announcement could come as soon as this week, multiple sources told Axios.
Trump could signal, or implicitly direct, the U.S.Trade Representative to "self-initiate" an investigation of China under section 301 of the 1974 Trade Act. Initiating an investigation under this section could result in either a new WTO dispute between the U.S. and China or unilateral retaliation by the Trump administration. It's too early to say what form that could take, but all tools, including tariffs, would be on the table.
Why this matters: In his career as a businessman and on the campaign trail, Trump has long railed against China for ripping off the U.S. But, so far at least, he has been more cautious in office because he wants President Xi to help restrain North Korea's nuclear program. If Trump takes an aggressive trade turn against China it would suggest he's positioning himself to turn his back on this strategy with China.