Trump Imposes Tariffs on $200B More of Chinese Goods
- Author: Eleanor Harrison Sep 20, 2018,
Sep 20, 2018, 1:43
Who will win the escalating trade dispute between the United States and China? What China does not understand is that these people are great patriots and fully understand that....
Men work on placing a steel switch track section of a rail line connecting Sichuan and Tibet, in Shannan Prefecture, Tibet Autonomous Region, China September 16, 2018.
China is not afraid of "extreme measures" the United States is taking in their trade war and will use it as an opportunity to replace imports, promote localization and accelerate the development of high-tech products, state media said. "So, I'm just hoping you know, our country is going to get stronger".
With the new announcements, USA tariffs will apply to $250 billion of Chinese goods and Chinese tariffs will apply to $110 billion of US goods.
"When a country has USD 375 billion in trade deficits, and then many billions of dollars in other liabilities of all different types, one has to do something about it", said the US President.
Add on the new $60 billion, and China is already imposing duties on about 85 percent of their USA imports.
"As president, it is my duty to protect the interests of working men and women, farmers, ranchers, businesses, and our country itself", Trump said in a statement. He demanded Canada and Mexico renegotiate the North American Free Trade Agreement to make it more favourable to the United States. Business leaders are warning the high-stakes strategy could upend their supply chains and raise costs, as economists worry Trump's tactics could derail the broadest global upswing in years.
Another Chinese state-owned newspaper, the China Daily, also said in an editorial on Wednesday the USA tactics would prove to be ineffective.
The administration earlier this month floated the idea of talks led by Treasury Secretary Steven Mnuchin, with Chinese Vice Premier Liu He expected to lead the Beijing delegation.
He continued: "Deeply integrated into the world economy, the Chinese economy is inevitably affected by notable changes in the global economic and trade context".
Trump imposed 25 percent duties on $50 billion of Chinese products in July. "There are many legitimate trade concerns USA companies have in the global marketplace, but tariffs are unwieldy and often counterproductive to address those problems". American farmers and business owners, meanwhile, fear they will lose access to the lucrative Chinese market: a middle class of consumers larger than the entire USA population.
"China has been unable to match the U.S. dollar-for-dollar in this round of tariffs, so a key question is what other steps China might take", Mark Williams, chief China economist at research firm Capital Economics, wrote in a note. -China trade, and investors withdrew, the US economy would be 1.6 percent - or $320 billion - smaller than under normal trading circumstances while China would lose 3.5 percent of its gross domestic product, according to a presentation Freund gave Monday at the Peterson Institute.
Fang told the Tianjin forum that he hopes the two sides can sit down and talk, but added that the latest US move has "poisoned" the atmosphere. -China commercial relationship after almost four decades of growing interdependence would ripple through the global economy, shaking financial markets, reordering business supply chains and perhaps even raising the danger of military conflict, analysts said.
US officials say the World Trade Organization, the global trade regulator, is antiquated and unable to deal with complaints about Chinese-style industrial policies. "We're going to see how the customer votes on this".