Beijing hit with $200 billion in tariffs that will go into effect almost immediately with the threat of more if Xi retaliates.
- The president threatened to hit countries that
“will not make fair deals with us”
- Said in response they would get
“Tariffed!” in a morning tweet
- Also stated the nation’s struggling steel industry was the
“talk of the World”
- Trump later announced $200 billion in new tariffs on China and threatened more if Beijing retaliates
President Donald Trump served up $200 billion in tariffs on imports from China on Monday that will go into effect almost immediately as he launched the latest volley in the escalating trade war between the two countries.
A White House statement said tariffs would start at 10 percent and go into effect in a week, on Sept. 24, before kicking into full gear at 25 percent at the start of the new calendar year.
“Further, if China takes retaliatory action against our farmers or other industries, we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports,” a statement from Trump warned.
Trump threatened that nations that don’t make
“fair” deals withe U.S. with getting
“Tariffed” on Monday morning as he prepared to slap the trade rival with the expected $200 billion in penalties.
He held up China as a case in point after reaching a new trade deal with Mexico earlier this month, telling a round-table on Monday that
“China is now paying us billions of dollars, and we will see how that all works out.”
“I have great respect for President Xi, as you know. I was over there for two days with him. I have a lot of respect for China. But last year, we lost $375 billion in deficits, and we had, in my opinion, way over $500 billion in cash. And that’s not including certain items that we won’t even talk about,”
he said, seemingly referring to alleged intellectual property violations.
“So we’re not going to lose that. We can’t do that. We can’t do that anymore. It should have been done many years ago. It should have been done by other Presidents. And actually, it’s a disgrace that it wasn’t done.”
Trump said that
“hopefully” the two countries will
“be able to work something out.”
“We’ll be having an announcement tonight after close of market, and that will take place,” he said, previewing the new tariffs.
“I think it’s going to work out very well with China. I think they want to make a deal. They do want to make a deal — that I can tell you. They want to make a deal.”
Trump also proclaimed the U.S. steel industry the
“talk of the World.”
“Our Steel Industry is the talk of the World. It has been given new life, and is thriving. Billions of Dollars is being spent on new plants all around the country!” he wrote.
The trade penalties are message to Canada, a country with which the U.S. is currently engaged in a trade stand-off, as well as Europe, a heavy bearer of the steep steel and aluminum tariffs that were introduced earlier in the year by the president.
“Tariffs have put the U.S. in a very strong bargaining position, with Billions of Dollars, and Jobs, flowing into our Country — and yet cost increases have thus far been almost unnoticeable. If countries will not make fair deals with us, they will be Tariffed!” Trump on Monday morning tweeted.
China has been pushing back against the threat of more tariffs from the U.S.
“We have always maintained that the only correct means to resolve the trade dispute is through dialogue and consultation on an equal basis with mutual trust and respect,” China’s foreign ministry spokesman Geng Shuang said on Monday.
The tough talk and fear of more tariffs and retaliation rattled investors and sent indexes dropping early in the day. The pan-European STOXX 600 index fell as much as 0.2 percent, and Germany’s DAX dropped half a percent, Reuters reported, while France’s CAC 40 and Britain’s FTSE 100 each fell 0.3 percent. The drop came after a strong week for European stocks last week. Markets were also weak across Asia.
The Trump administration says the steel and aluminum tariffs it introduced are necessary for national security. U.S. steel production is over half what it was in the early and mid 1970s. The U.S. put out about 40 per cent of the world’s steel after World War II, but the figures have steadily dropped in the years since.
Tariffs on China are in response to alleged intellectual property violations and other unfair trading practices, according to the U.S.
“Losses have been staggering for so many years for our country. And we just can’t let that happen anymore,” Trump on Monday said.
The tough talk follows reports China is deliberately reducing exports to the U.S. by slowing down customs approvals and stepping up environmental and other inspections.
So far in the ongoing trade war, China has matched new U.S. tariffs on goods with fees on their own. An official Chinese newspaper called for more aggressive measures to
“make American pain worse” following tariff hikes by both sides on $50 billion of each others goods.
Beijing is considering Washington’s invitation last week to revive talks on their fight over Chinese technology policy and plans for state-led development of global champions in robotics and other fields.
U.S. officials say those violate Beijing’s market-opening commitments and worry they might erode US industrial leadership.
Speaking Sunday at an economics forum, Lou Jiwei, a former finance minister and chairman of China’s sovereign wealth fund, said Beijing should disrupt supply chains of American companies that rely on China’s vast manufacturing industries, the website Sina.com reported.
“counterattack strategy needs to restrict exports to the United States as well as (imports of) U.S. goods,” Lou was paraphrased as saying.
“Only knowing the pain of fighting will stop the war and cause (the United States) to negotiate seriously,” said Lou.
Lou was finance minister through 2016 and serves as chairman of China’s 1.9 trillion yuan ($290 billion) National Social Security Fund, which manages assets of government pension plans. He is a former chairman of China’s sovereign wealth fund, the China Investment Corp.
The Chinese government said last week it welcomed Washington’s proposal for more talks, though neither side has given any indication it is willing to compromise. Communist leaders see their industry plans as a path to prosperity and global influence.
China wants talks based on
“mutual trust,” said a foreign ministry spokesman, Geng Shuang. He didn’t answer directly when asked whether Beijing would back out if U.S. President Donald Trump goes ahead with a proposed tariff hike on $200 billion of Chinese goods. If an increase goes ahead,
“China will have to take necessary countermeasures,” said Geng at a regular daily briefing.
Chinese authorities have yet to confirm what steps aside from retaliatory tariffs they might take. But they have threatened
“comprehensive measures” as Beijing runs out of imports for penalties due to its lopsided trade balance with the United States.