Trump's latest attempt to 'thread the needle' with China could cost US businesses: report
President Donald Trump appears to be trying to thread a dangerous needle with China over an important component of artificial intelligence technologies, and his moves could disadvantage American businesses, according to a new report.
The New York Times reported on Tuesday that the Trump administration issued a trade report concluding that China's continued dominance in the semiconductor space has "disadvantaged" U.S. businesses. The report, initiated under the Biden administration, included no language recommending increasing tariffs on Chinese semiconductors for at least 18 months in response to its findings, according to the report.
Trump's decision to "punt" on additional tariffs comes at a tumultuous time in the U.S.-China trade relations. Trump raised tariffs on a range of Chinese goods earlier this year, prompting China to retaliate by halting all purchases of American soybeans. The move prompted many farmers to speak out against Trump, a president the demographic overwhelmingly supported in the 2024 election.
Those wounds have since begun to heal, but the path forward for the two countries remains rocky.
“The administration seems to be threading this needle right now by moving forward with global actions in which China is just one of the countries impacted,” Sara Schuman, a former U.S. trade official who is now managing director at Beacon Global Strategies, told the NYT.