
POLITICO Tech
‘Gloves off’: A former Trump trade official on his China fight
Apr 10, 2025
Nazak Nikakhtar, a former Commerce Department official during Trump’s first term and a law partner at Wiley, delves into the heated trade war with China. She emphasizes the vulnerability of the tech industry facing Beijing's retaliation amid soaring tariffs. Nikakhtar discusses the complexities of U.S.-China economic decoupling and the need for local supply chains to mitigate crises. She raises concerns about national security intertwined with corporate influence, particularly regarding companies like Huawei, painting a vivid picture of the geopolitical landscape.
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Quick takeaways
- The U.S. has increased tariffs on China to an unprecedented 125 percent, significantly straining trade relations and creating economic uncertainties.
- The tech industry faces critical vulnerabilities due to reliance on Chinese imports, prompting a reassessment of supply chains amidst rising trade tensions.
Deep dives
Escalating Tariffs and Economic Decoupling
The current tariff rate on China has escalated to an unprecedented 125 percent, significantly impacting trade relations between the U.S. and China. This dramatic increase is part of a larger strategy of economic decoupling that is altering the landscape for businesses across both nations. High tariffs imposed by the U.S. are being met with retaliatory measures from China, highlighting a rapidly deteriorating trade relationship. This situation raises concerns about the long-term effects on the U.S. economy as essential supplies and materials from China become increasingly restricted.
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