Trump's 'hawkish' tariffs on China have Pence's support, but he cautions against turning China into an enemy.

Mike Pence, the former Vice President, endorsed the "hawkish" tariffs that President-elect Trump intends to impose on China, while cautioning in a Tuesday night speech that the US must strike a balance in its challenging relationship with Beijing.

"President Trump's tough approach to China is not a bluff, and I believe that with wise choices, America's relationship with China can ultimately improve," he said to the U.S.-based China General Chamber of Commerce Tuesday night.

"Although China is our economic adversary and rival, it is crucial that we do not turn it into an enemy," he stated.

One week after Trump stated that he would impose a 25% tariff on goods from Mexico and Canada until they improve border control, Pence made comments about the move, which Biden had warned could disrupt the 2020 USMCA agreement, which promotes duty-free trade among the three North American countries.

He stated that China will face a 10% additional tariff on top of any other tariffs until it takes action against illegal fentanyl smuggling.

Goods entering the U.S. are subject to taxes known as tariffs, which serve as a deterrent to certain imports. As a result, U.S. companies bear the brunt of the increased costs, which are eventually passed on to the American consumer.

In 2018 and 2019, the Trump administration imposed $80 billion worth of new taxes on Americans through tariffs on $380 billion worth of products.

The Biden administration maintained the existing tariffs and imposed additional taxes on $18 billion worth of Chinese goods.

The organization reported that the combined trade war policies currently in place result in $79 billion in active tariffs, which translates to an average annual tax increase of $625 on U.S. households.

To address concerns about additional tax hikes, Pence spoke to American and Chinese company owners at the gala Tuesday night, stating that it is necessary to bring China back to the negotiating table to address trade abuse practices, intellectual property theft, and the Chinese government's increasingly adversarial posture.

Pence acknowledged the concerns of some people that tariffs and other restrictions on China could harm the economy, both in the US and China, and potentially lead to a trade war that would harm both nations.

"I sincerely hope that his proposed tariffs will lead China back to the negotiating table, as it did during our administration. Although it may be challenging in the short-term, it will ultimately benefit both countries in the long-term. Our goal is to improve the relationship between America and China, and I believe a firm but fair approach is the key to achieving this."

Pence stated that, having served with Trump for four years, he is confident that the president-elect can strike a balance between diplomatic respect and robust economic policies.

The objective of tariffs is not to isolate or restrict China, but rather to improve relations through actions and reforms to create a better future, as the president-elect stated.