Trade talks between the U.S. and China are not looking any better.
This week, the U.S. labeled China a currency manipulator after the yuan sank to its lowest level in 11 years in a move that some believe to be retaliation to the new tariffs that President Donald Trump has threatened to impose on Chinese imports.
Reva Goujon, the vice president of global analysis at Stratfor, believes the U.S. has a long way to go before getting to any deal.
“Here you have, again, the White House reverting back to pressure tactics like the tariffs, brands China a currency manipulator even though it doesn't really meet the criteria,” she said.
Earlier this month, Trump said he would impose an additional 10% of tariffs on $300 billion worth of goods from China starting Sept. 1, adding to the existing 25% tariffs on $250 billion worth of Chinese goods.
“When you look at the Trump presidency, two and a half years into this presidency, 15 months until the election, and we're at this very dangerous juncture now where the tactics of the Trump White House are overtaking any semblance of a strategy,” Goujon told Yahoo Finance’s YFI AM on Friday.
In addition to the tariffs, Trump has banned U.S. businesses from working with the Chinese tech giant Huawei unless they apply for a special license to do so. Goujon believes China is driving a hard line in trade talks largely due to the sanctions on Huawei.
“Critically, we're not seeing any movement so far from commerce or the White House in easing the export restrictions on Huawei,” Goujon said. “And until we see some movement on that, so far no signs of it, China's not going to give in and reciprocate.”
Ashley Nelson is a production assistant for Yahoo Finance. Follow her on Twitter.