Get the latest market trends in your inbox

Stay on top of the latest market trends and economic insights with the Axios Markets newsletter. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Minneapolis-St. Paul

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa-St. Petersburg news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa-St. Petersburg

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Rebecca Zisser/Axios

With China’s economy cooling, President Trump and his aides are emboldened on the hardline tariffs strategy that they increasingly believe is jamming President Xi Jinping, officials tell Axios.

Why it matters: For West Wing policy advisers, China has become a rare unifying issue, while deep rifts remain on other trade issues, especially the wisdom of Trump’s plan to impose massive tariffs on car imports.

The Wall Street Journal reports in today's lead story: "The Trump administration is moving closer ... to levying tariffs on nearly half of Chinese imports despite broad opposition from U.S. business."

Here's why:

A member of Congress who recently spoke at length with Trump about trade said: "He thinks he’s right and he thinks he’s winning."

  • "He's resolved to be the guy that changes the world trading system. ... He's willing to take some pain to do it."
  • "Trade is the one policy issue he feels comfortable with: He owns it, and he's 100 percent convinced he's right."
  • Most administration aides and congressional Republicans oppose the imposition of auto tariffs, although Trump remains warm to the idea.
  • But no one is pushing back on China.

Based on news reports out of China (Wall Street Journal, Aug. 14, from Beijing: "China’s Growth Engine Sputters as It Battles U.S. Over Trade"), some administration officials believe Trump is winning his fight with Beijing.

  • "They're shaken up," one senior official told us.
  • Sources who have spoken to White House economic adviser Larry Kudlow marvel that the famous free-trader is an unapologetic "China hawk" (although he has been confrontational with China going back to his CNBC days).
  • A senior administration official said: "The president is all-in, 100 percent on China."
  • After an administration negotiating trip to China, there was internal speculation that there might be what the hawks called "an appeasement deal" where China bought off Trump with an agreement to buy more soybeans and other American products.
  • But that's now off the table, in part because the White House feels China has made no changes in practices the U.S. objects to, including its theft and heavy-handed acquisition of American companies' intellectual property and technology.

The member of Congress said: "They think internally that because China sells so much more to the U.S. than the U.S. sells to China, this is a war they can win."

  • However, many economists remain skeptical. And the administration has little true visibility into what Xi thinks.
  • One Trump adviser told us that they urged the president to limit the number of trade fights he picks around the world: "The goal is to isolate China."
  • So fights over NAFTA and Europe become a distraction.

Most of Trump’s top economic and trade officials adamantly oppose these auto tariffs. Trade adviser Peter Navarro is a lonely internal advocate alongside the president.

  • Two sources who recently spoke to Defense Secretary Jim Mattis came away thinking that he would not support a national security argument for the imposition of auto tariffs.

Be smart: If Trump carries out his threats on auto tariffs, it could be the act that provokes a Republican rebellion on Capitol Hill.

Subscribe to Axios AM/PM for a daily rundown of what's new and why it matters, directly from Mike Allen.
Please enter a valid email.
Please enter a valid email.
Server error. Please try a different email.
Subscribed! Look for Axios AM and PM in your inbox tomorrow or read the latest Axios AM now.

Go deeper

2 hours ago - Health

Food banks feel the strain without holiday volunteers

People wait in line at Food Bank Community Kitchen on Nov. 25 in New York City. Photo: Michael Loccisano/Getty Images for Food Bank For New York City

America's food banks are sounding the alarm during this unprecedented holiday season.

The big picture: Soup kitchens and charities, usually brimming with holiday volunteers, are getting far less help.

4 hours ago - Health

AstraZeneca CEO: "We need to do an additional study" on COVID vaccine

Photo: Pavlo Gonchar/SOPA Images/LightRocket via Getty Images

AstraZeneca CEO Pascal Soriot said on Thursday the company is likely to start a new global trial to measure how effective its coronavirus vaccine is, Bloomberg reports.

Why it matters: Following Phase 3 trials, Oxford and AstraZeneca said their vaccine was 90% effective in people who got a half dose followed by a full dose, and 62% effective in people who got two full doses.

Updated 6 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Health: Coronavirus cases rose 10% in the week before Thanksgiving.
  2. Politics: Supreme Court backs religious groups on New York coronavirus restrictions.
  3. World: Expert says COVID vaccine likely won't be available in Africa until Q2 of 2021 — Europeans extend lockdowns.
  4. Economy: The winners and losers of the COVID holiday season.
  5. Education: National standardized tests delayed until 2022.