Former National Security Advisor John Bolton has warned that President Donald Trump’s aggressive trade policies toward China may have unintended adverse effects, impacting both allies and adversaries alike. Bolton articulated his concerns during an interview with Dan Murphy on Finance Newso.
“This is certainly not the way you treat your friends,” Bolton remarked, criticizing Trump’s administration for publicly threatening allies with tariffs under the guise of trade negotiation improvements. “You don’t slap them in the face publicly and say, I’m going to tariff you unless you do better on trade negotiations,” he added.
Bolton stressed that targeting China, which he believes warrants a trade conflict, has inadvertently put the Asian nation in a strategically advantageous position. He stated that a united front against China, involving traditional allies, could have significantly improved the effectiveness of U.S. trade strategies. “This is not just an economic blunder; it’s a strategic blunder that’s going to cost the United States dearly if this tariff policy isn’t reversed,” he warned.
Finance Newso noted that a spokesperson for the White House was unavailable for comment at the time of their inquiry.
On April 2, Trump initiated what he termed “liberation day,” introducing expansive tariffs on imports from nearly every nation. This sweeping action sent shockwaves through global markets, leading economists to criticize his rationale as flawed. A 10% blanket tariff was enacted globally, with several countries facing steeper tariffs based on their trade deficits with the U.S.—an approach Trump referred to as “reciprocal,” despite its lack of correlation with tariff practices.
Following a tumultuous market reaction that resulted in the loss of trillions in wealth and a spike in U.S. treasury yields, Trump announced a 90-day delay on the broader tariffs but retained the 10% tariff across all countries. This included allies and earlier tariffs of 25% on imports from Mexico and Canada, alongside further increases specifically on China, which had already imposed counter-tariffs on American products.
The escalating trade conflict has seen the U.S. impose tariffs of up to 145% on Chinese imports, while China’s retaliatory tariffs on American goods currently sit at 125%. China has vowed to “fight to the end,” despite the Trump administration recently declaring exemptions for Chinese electronics, including smartphones.
Bolton concurs with Trump’s stance that China needs to be held accountable for alleged trade violations and unfair practices, such as intellectual property theft and the subsidization of certain sectors to create an uneven playing field. He suggested that a more effective strategy would involve collaboration with allies across Asia and Europe, rather than alienating them. “Instead, we’re having a war with our friends and really crippling our ability to deal effectively with China,” he said.
Xi on a charm offensive
International backlash has mounted against Trump’s trade decisions. French Prime Minister François Bayrou recently remarked that these actions have created a “hurricane” affecting global trust, a sentiment echoed by leaders worldwide.
Meanwhile, Chinese Premier Xi Jinping has begun what analysts are interpreting as a charm offensive throughout Southeast Asia, visiting Vietnam before traveling to Malaysia and Cambodia.
Bolton further cautioned that China is not halting its regional ambitions, indicating that Xi’s outreach to South Korea and Japan predates the tariffs. “This is just insanity from the U.S. point of view, that we would even let this happen,” he said.
