As the president pursues his uncompromising approach to China, business leadrs are growing increasingly frustrated. The U.S. Chamber of Commerce, National Association of Manufacturers and the National Retail Federation were among those blasting the administration's use of tariffs as costly and counterproductive.
Under Trump's plan, the tariff pain on the $200 billion batch of Chinese goods will grow on Jan 1, 2019, rising to 25 percent from the original 10 percent. If there remains little sign of diplomatic progress by that point, more companies may switch their orders from Chinese suppliers to factories in countries such as Vietnam or India, executives say.
"We're probably talking about a world with two centers: a China-centered economic domain...and another centered on the United States," said Aaron Friedberg, a professor of politics and international affairs at Princeton University, who handled China policy as an aide to Vice President Richard Cheney in the George W. Bush administration. "It's heading toward a bifurcated global economy."