As Washington and Wall Street grapple with the implications of a simmering China “trade war,” the United States has an opportunity to use nuanced tariff policy to reward a long-time ally and flourishing democracy in Asia: Mongolia.

After China, Mongolia is the world’s largest producer of cashmere. In 2017, world cashmere production reached 20,000 tons with approximately 48 percent supplied by China and 40% by Mongolia. These fine fibers are knit and woven into luxurious products found at high-end interior design and home décor boutiques, and at ski resorts across Colorado and the Rockies.

Expanding U.S. — Mongolian trade will help the country grow its economy and, in the process, strengthen its sovereignty. Mongolia remains a thriving free-market democracy in a region where it is surrounded by neighbors who have yet to embrace similar values. Mongolia has never erected protectionist tariffs and has welcomed American imports.

Congress is evaluating next steps to Mongolia following the Administration’s unilateral trade actions. Similar to the measures granted Nepal.