In its submission to the Office of the U.S. Trade Representative (USTR), the Center for American Progress warns that the proposed “board of trade” fails to address the primary strategic threat: Beijing’s heavily subsidized industrial overcapacity aimed at dominating critical global supply chains. CAP emphasizes that countering this challenge requires working alongside international allies to build alternative, non-Chinese manufacturing capacity, rather than relying on unilateral measures focused purely on trade deficits.
While CAP supports targeted tariff relief on nonsensitive goods, it cautions USTR against evaluating relief through a purely bilateral lens. Broad, unilateral tariffs previously triggered severe retaliatory export bans from Beijing on critical minerals and components. Lowering duties for China while keeping heavy tariffs on friendly nations risks further eroding trust with the very allies needed to counter Chinese economic aggression.
Finally, CAP urges the administration not to let trade negotiations compromise core national security policies. Beijing’s economic leverage must not dissuade the United States from enforcing robust export controls or supporting Indo-Pacific allies. The United States must leverage its key strategic strengths—its alliance networks and global financial leadership—to resist economic coercion.