Preparation for Trade Investigation Against China by the Trump Administration

Critical Trade Moves from Trump Administration

The New York Times (NYT) reported that the administration of President Donald Trump is preparing to initiate a trade investigation due to China's failure to comply with the terms of the trade agreement signed in 2020. The report, based on two sources, states that the U.S. will begin a process to investigate China's adherence to the trade agreement.

Details and Expectations of the Investigation

According to NYT, the details of this trade investigation may be announced today. It is reported that China has not fulfilled its previous commitments. In this context, it is noted that, according to 2022 data, there have been significant issues particularly in the supply of U.S. airplanes, soybeans, energy, and services.

Customs Duties and Increasing Tensions

This process is expected to lead to greater customs duties and increased tensions between the U.S. and China. Another noteworthy aspect of the news is that this step is taken before the upcoming meeting between Trump and Chinese President Xi Jinping next week.

Trump's Comments on Customs Duties

Trump previously stated that if an agreement cannot be reached, he would impose a 100% additional customs duty on Chinese products effective November 1. He also emphasized various pressure methods that could be applied to China, saying, "I think we will make a deal. They threatened us with rare earth elements, and I threatened them with tariffs."