Unleashing the Beast: Trump's Stealthy Tariff Strategy in his Second Term
Trump's Successor Amplifies Tariff Implementation, According to Ex-Commerce Chief Wilbur Ross
In a dramatic turn of events, President Donald Trump has reloaded his trade war arsenal for a second round with China - and it's clear he's not holding back. Former Commerce Secretary Wilbur Ross claims that Trump is taking a more nimble, less bureaucratic approach to trade policies this time around.
During the first term, Trump unleashed a trade war with China, implementing Section 232 and Section 301 proceedings - complicated processes that required hearings, reports, and endless consultations[1]. Fast forward to 2025, and Trump is now leveraging the International Emergency Economic Powers Act (IEEPA) for a smoother, speedier tariff strategy.
"Trump's now got a knife in his pocket. No more waiting around," Ross explained to Fox News Digital[2]. "The old way was like running a marathon with no shoes. Now he's got no excuses."
Indeed, Tariffs are trumping public hearings and endless consultations under this new approach. Trump can now strike with little warning, a move that's pleasing his base but has some businesses and allies quaking in their boots, left out in the cold.
Fifty Shades of Gray(tariffs): Closing Loopholes and Isolating the Enemy
Under this strategy, Trump has progressively tightened the noose on Chinese imports since the early days of 2025. Ross urges Trump to lock in trade deals in the Asian region as a way to alleviate tariffs and isolate China.
"If they had a five-nation pact with India, Japan, Vietnam, South Korea, and maybe even Mexico, they could take the wind out of China's sails," said Ross.
He predicts that these tariffs will spur some manufacturing back to the US, but manufacturing hubs will simply move from China to other low-cost nations allied with the US, such as India—as evidenced by Apple's recent move.
The Great Game: Tackling the Loopholes and Leveling the Field
As the administration focuses its crosshairs on China again, Ross cautions the Trump team to heed the lessons of the first term and close loopholes. The CCP notoriously played the U.S. at its own free-trade game by shipping goods through third-party countries like Vietnam, who then shipped them to the U.S.
"To prevent that from happening again, Trump needs to cut some deals with low-power countries to ensure that Chinese goods don't sneak in through the back door," Ross warns. He suggests an alliance in which American allies impose parallel tariffs on Chinese imports, effectively walling off the U.S. market.
Rejecting the Red Tape: Less Consulting, More Action
From February 2025, the administration imposed a 10% tariff on all Chinese goods, citing concerns over fentanyl trafficking. This rate escalated to 20% the following month. On April 2, Trump declared a "Liberation Day" and announced a universal 10% tariff on all imports, justifying the move under the IEEPA.
Higher "reciprocal" tariffs were imposed on approximately 60 countries, with rates varying based on the U.S. trade deficit with each nation. By April 11, China faced a combined tariff rate of 145%, and other noteworthy rates included 46% on Vietnam, 36% on Thailand, and 24% on Japan.
Days later, Trump put the sweeping tariff plan on a 90-day pause to allow trade deals to play out with countries willing to negotiate, keeping tariffs at 10% for all but China.
China is currently "pondering" Trump's offer for negotiations, its Commerce Ministry stated on Friday, while cautioning the U.S. against "blackmail" and "economic coercion."
The Great Unknown: Will China Cave or will the U.S. Blink First?
While Trump insists Xi Jinping wants a trade deal, Ross anticipates that doing business with China will be a thorny affair, "dealing with China is always more complicated than any other country due to issues like intellectual property, market access, and discriminatory treatment of American companies."
As the tariff war with China rages on, tensions between the U.S. and China have reached unprecedented levels. China has retaliated by imposing tariffs on U.S. goods and restricting exports of critical minerals.
Ross advocates for increased U.S. investment in strategic minerals processing to combat China's dominance in this sector. Despite the environmental challenges, Ross argues that it's better for the environmental impact to be controlled by U.S. industry rather than sitting back and letting China control the game.
- President Donald Trump's new tariff strategy in his second term, leveraging the International Emergency Economic Powers Act (IEEPA), is designed to enable swift tariffs, replacing the bureaucratic processes and endless consultations of his first term.
- With his focus on reducing tariffs, Wilbur Ross suggests Trump should aim for trade deals in Asia, particularly with countries like India, Japan, Vietnam, South Korea, and maybe even Mexico, to isolate China and alleviate tariffs.
- In order to prevent China from exploiting loopholes, as it did during the first term by shipping goods through third-party countries, Ross advises the Trump administration to secure deals with low-power countries that will impose parallel tariffs on Chinese imports, effectively creating a wall around the US market.
