'A UFC Battle Between China & US' says Dan Ives

Dan Ives, Global Head of Technology at Wedbush Securities, on the Nvidia chip restrictions. Technology stocks fell due to new US government restrictions on Nvidia chip exports to China and a disappointing report from ASML Holding NV, wiping out $155 billion in market value. He speaks with Bloomberg's Tom Keene and Paul Sweeney.

The Trump administration is preparing to pressure nations to curb trade with China in negotiations over US tariffs, according to people familiar with the matter.

Dozens of nations are seeking reductions or exemptions from President Donald Trump’s historic import taxes. In exchange for doing so, the US is set to ask them to take steps limiting China’s manufacturing might, a bid to ensure Beijing doesn’t find avenues around Trump’s tariffs.

Trump’s top economic advisers are discussing asking representatives from other nations to impose so-called secondary tariffs, essentially a monetary sanction, on imports from certain countries with close China ties, according to a person familiar with the process. The US also wants trading partners to refrain from absorbing excess goods from China, other people said. Other concessions on China may also be put on the table.

Mexican officials are expecting the US to ask their country to increase tariffs on electric vehicle imports from China, according to a person familiar with the government’s thinking. Mexico’s economy ministry declined to comment.

The White House did not immediately respond to a request for comment.

The push amounts to an effort by Trump’s team to harness longstanding partners to encircle China and raise pressure on Beijing to change its economic practices. It’s unclear if that strategy will bear fruit; some foreign officials have come away from early US discussions with doubts about the likelihood that tariff deals get done.

Trump himself floated the idea this week in an interview with Fox News’ Spanish-language arm, when asked if he would force Latin American countries to choose between China’s Belt and Road Initiative and US investment.

“Maybe they should do that,” he said.

The president has become personally involved in negotiations with other nations. He said he would sit in on talks Wednesday with a Japanese delegation.

Among the loudest proponents of the idea is Treasury Secretary Scott Bessent, who is playing a lead role in talks after Trump last Wednesday announced a 90-day pause on higher tariffs on roughly 60 trading partners except China.

“They’ve been good military allies, not perfect economic allies,” the former hedge fund manager said last week of some traditional American partners. Bessent expressed optimism about reaching agreements and “then we can approach China as a group.”

China has long been a target of Trump and his predecessors over its trade imbalance, alleged intellectual property theft and government subsidies the US says undercut competition with American companies. Even after Trump temporarily suspended higher tariffs on other nations, he ratcheted up his newest levies on China to 145% in a tit-for-tat with Beijing.

But Trump and his team have sent conflicting signals about what their end goal is with China. The president has long called Chinese President Xi Jinping a friend and he has held out the possibility of brokering a tariff deal.

“The ball is in China’s court. China needs to make a deal with us. We don’t have to make a deal with them,” White House Press Secretary Karoline Leavitt said Tuesday, reading what she said was a statement Trump dictated.

China wants to see a number of steps from the Trump administration before agreeing to talks, including refraining from disparaging remarks, a more consistent US position and a willingness to address Chinese concerns on US sanctions and Taiwan, according to people familiar with Beijing’s thinking. The Chinese government also wants Trump to appoint a trusted point person for negotiations.

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