Trade War and ‘War Cabinet’: US Foreign Policy in Uncharted Territory

On Thursday, the United States President Donald Trump announced two major decisions- one on twitter- that has baffled political observers. And the decisions have raised fears that the diplomacy has completely lost its control over the foreign policy of the country.

Intensifying the global trade war, Trump said that  it would impose tariffs of up to $60bn in annual imports from China. Signing Section 301 Action of the 1974 Trade Act, Trump authorised the implementation of new wide reaching tariffs covering the import of a wide variety of Chinese goods into the United States. The aim is to bar Chinese technology and technology investment from the US market. The US administration also threatened to take further action against alleged intellectual property rights violations in China.

Trump took the decision bypassing Congress and the US Chamber of Commerce, both of whom were in opposition to such a move.

On the same day, Trump fired his National Security Advisor (NSA) HR McMaster and placed an ultra hawk and warmonger at helm. Trump choice of new NSA, John Bolton, who vehemently calls for bombing of Iran and North Korea, have raised fears that US is moving towards some sort of military (mis)adventure.

According to political observers, reading both the announcements together and combined with the Trump administration anti-diplomacy psyche, the country’s foreign policy is into  unchartered territories.

Interestingly, the tariff announcement came just few days before the launch of China’s first Petroyuan oil futures contracts on March 26. The Petroyuan ushers a new era in the global oil trade and moreover, it signals the beginning of the end of the global dominance of the US Dollar.

Meanwhile, China has hit back and said it doesn’t fear a trade war with the US. China warned that apart from pursuing legal action against the US at the World Trade Organization, it will also put r reciprocal tariffs on $3 billion of imports from the US.

Trump decision to bring in Bolton to his team comes at a time when the prospects of peace is blooming in the Korean peninsula. Bolton is considered to be an extremist hawk who loves war, and was a staunch supporter of US invasion of Iraq in 2003. The North and South Korean engagement is ushering ahead with the two side agreeing to hold a high level meet next week.

Also, with Bolton on the ship, the larger idea seems to be to ram the Iran nuclear agreement, which would have unending consequences in the West Asian region.

Bolton in an op-ed in Wall Street Journal, written two months ago, noted that American foreign policy, “should be ending Iran’s 1979 Islamic Revolution before its fortieth anniversary.

“Recognizing a new Iranian regime in 2019 would reverse the shame of once seeing our diplomats held hostage for four hundred and forty-four days. The former hostages can cut the ribbon to open the new U.S. Embassy in Tehran,” wrote Bolton.

Also Read: US and Israel Signs Secret Intelligence Pact to Tackle Iran

According to sources, Trump’s primary reason to fire his former secretary of state Rex Tillerson last week was regarding the differences on how to deal with Iran. Tillerson wanted to take a more diplomatic approach, while Trump wanted to shoot down the deal.