Zero-sum game

IT IS nothing more than crude strong-arm extortion for the Trump administration to reveal it plans to propose raising the pending tariffs on $200 billion worth of Chinese goods from the 10% it originally planned to 25%.

The timing betrays how unscrupulous the US administration is in trying to squeeze as much as it can from its trade partners, as the revelation comes immediately after reports that the two countries may be returning to the negotiating table.

The Trump administration has already announced it will provide $12bn in emergency aid to ease the misery of US farmers brought about by the tariffs. The US Chamber of Commerce estimates that another $27.2bn would be required to prop up other sectors battered by the retaliatory tariffs from the US trade partners.

The US economy will never emerge unscathed from the spat. US farmers, other industries and consumers will definitely suffer as the trade war drags on. It is obvious that there will be no winners if a trade war erupts.

Trump and his advisers are wrong if they believe China will give in to its unreasonable trade torment. China will accept negotiation, but will not give in to force. Trump must know that there is no probity in saying “let’s talk and sort this out” while threatening to talk by force even more than before.

To hold up the possibility of ending the dispute through talks, while denying that outcome by making impossible demands will only stir up more resentment at home as companies and consumers suffer from the deceit.

How big a Band-Aid is the Trump administration prepared to provide to try to prove a point that is wrong in the first place?