Trump administration targets China's trade tactics, accuses Beijing of tariff evasion

The US plans to request that they take measures to limit China's manufacturing capabilities, to prevent Beijing from finding ways to circumvent Trump's tariffs. Trump's chief economic advisers are contemplating the proposal of asking officials from other nations to impose what are referred to as secondary tariffs, essentially monetary penalties, on imports from countries that have close ties with China. The US also seeks to encourage trading partners to avoid taking on excess goods from China, according to other sources cited by The Japan Times.

This initiative represents an attempt by Trump's team to rally traditional allies to surround China and increase pressure on Beijing to alter its economic behaviours, as highlighted in The Japan Times report.

China has consistently been a focus of criticism from Trump and previous administrations regarding its trade surplus, alleged theft of intellectual property, and government subsidies that the US claims undermine competition with American firms, The Japan Times report indicated.

Peter Navarro, Trump's trade advisor, has mentioned that China uses Vietnam to ship products in order to evade tariffs, a practice known as transhipment, characterising Vietnam as "a colony of communist China," as quoted by The Japan Times.

The discussions between the European Union and the U.S. this week yielded little progress in addressing trade disagreements, with Trump's advisers signalling that most of the 20% tariff imposed on the EU will likely remain, according to The Japan Times.

Last week, Treasury Secretary Scott Bessent cautioned the EU against shifting towards China amid the global economic turmoil sparked by Trump's tariffs, specifically calling out the Spanish government's support of that strategy, stating it "would be cutting your own throat."

Spanish Economy Minister Carlos Cuerpo dismissed that description, asserting the importance of Europe maintaining ties with all major global powers. He emphasised that China should be viewed as a "strategic partner" for the EU, as quoted by The Japan Times.