President Trump’s intention to persuade China to play by long-established international trade rules is commendable. But focusing on the U.S. trade deficit with China, and imposing tariffs to eliminate it, has proven ineffective. Now, the coronavirus has given Trump an opportunity to shelve that failed strategy and immediately eliminate tariffs on Chinese imports. This shot in the arm will likely be reciprocated by China, stimulate our economies, and give Trump the opportunity to chart a better course. Let me explain.

In 2019, the U.S. unemployment rate reached record lows while the stock market hit record highs. But not everyone has benefitted. According to a recent report by the Pew Research Center, most Americans believe the economy is helping the rich, while hurting the middle class and poor. What does this mean for the future of U.S. capitalism?

When I crossed through Checkpoint Charlie from West Berlin to East Berlin nearly 30 years ago, the failures of former East Germany were immediately obvious. The grey unkempt landscape and dilapidated buildings looked as though that country hadn't been repaired since American and Soviet tanks faced off yards apart decades earlier in one of the most tense nuclear showdowns.

When it comes to international trade, China hasn’t always played by the rules. So the question begs: How do you change that behavior? Engaging in a trade war by imposing tariffs isn’t ideal. To save face, Chinese President Xi Jinping must appear strong and that means responding to U.S. tariff increases with Chinese tariff increases. This tit for tat strategy, which escalated again on September 1, is increasing volatility and uncertainty, while hurting economic growth. But it gets worse.