WSJ: US aims to strengthen dollar through isolating China in global trade

Washington is developing a strategy aimed at weakening China's position in global trade. This could help strengthen the dollar and reduce inflationary pressures in the US. According to The Wall Street Journal (WSJ), the administration of President Donald Trump is negotiating with more than 70 countries to limit the presence of Chinese companies in their markets.

According to the publication's sources, the US is offering to reduce tariffs on imports in exchange for trade partners' refusal to cooperate with China. In particular, the matter concerns prohibition of both the presence of Chinese enterprises on the territory of these countries and the transit of their products through their jurisdictions. The White House insists on reducing imports of cheap industrial goods from China. According to US officials, Beijing undermines US competitiveness and puts pressure on domestic markets.

The initiator of the plan is Treasury Secretary Scott Bessent. According to his estimates, the proposed measures will help reduce global dependence on Chinese supplies, strengthen US export positions, and boost the dollar.

Earlier, Donald Trump announced a 90-day suspension of higher duties for a number of countries. This should create incentives for allies to support the US trade agenda, WSJ notes.