President Trump’s hardline approach to trade with China has left critics questioning whether it will yield any long-term results for the U.S.
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“Applying unilateral pressure through tariffs and threats, like President Trump has done, is calculated to backfire,” Peterson Institute senior fellow Fred Bergsten told FOX Business’ Liz Claman on Friday.
Although U.S. tariffs have gotten China’s attention, Bergsten said, the Trump administration should mobilize its traditional allies to further isolate and pressure China to change its ways.
“History shows they will not capitulate to U.S. bilateral pressure,” he said.
White House economic adviser Larry Kudlow said the U.S. economic boom puts the nation at an advantage in trade talks with China.
“We are in a boom and they know it,” he said at the Detroit Economic Club on Thursday. “We are in a position to back up our actions. I am not sure if they can, we will see.”
Bergsten said taking a bilateral approach to trade with China could be costly for the U.S. economy.
“What we should do is work with our allies and as it is increasingly the case to try to develop an international consensus that isolates China and motivates them to stop cheating,” he said.