China, E.U. retaliate as new U.S. tariffs go into effect; Stocks resume slump

A former Biden administration official in charge of U.S. policy toward China has warned that Trump’s simultaneous trade offensive against dozens of countries might be giving China an edge on the world stage.

“The fact that the administration came out against nearly 70 countries at once makes me worried that it may have actually improved China’s position,” Rick Waters, deputy assistant secretary of state for China and Taiwan in the last administration, told NBC News.

“If you go after your friends harder than your enemies, you lose the leverage of being able to bring those friends to your side and improve your position with the primary competitor,” Waters told NBC News.

China, he said, was “hunkering down for a long period,” hoping it can outlast the U.S.. He added that Beijing has other means to hurt the U.S. in return, including halting cooperation on fentanyl.

“I think we’re just in a bad marriage here that’s leading towards some sort of economic divorce,” he said.

Even though China relies far more on its exports to the U.S. than vice versa, the U.S.’ doubling down on its tariffs on China isn’t going to force Beijing’s hand, he said. “The Chinese are proud. They have a history of humiliation at the hands of foreign powers.”

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