President Trump threatens new tariffs on $200 billion in Chinese imports

Marcus Newton
June 22, 2018

The dispute revived after the White House renewed its plan for a tariff hike on $50 billion of Chinese goods as part of the technology dispute. It said Beijing also was scrapping agreements to narrow its multibillion-dollar trade surplus with the United States by purchasing more American farm goods, natural gas and other products.

While the threat of a new massive tariff is just that - and the earliest any of those tariffs are set to take effect is July 6 - the Trump administration's antagonistic rhetoric toward China appears to indicate that the battle isn't going to end anytime soon.

"Such a practice of extreme pressure and blackmailing deviates from the consensus reached by both sides on multiple occasions, and is a disappointment for the global community", the ministry said in a statement on Tuesday.

"If the United States acts irrationally and issues a list, China will have no choice but to take comprehensive measures of a corresponding number and quality and take strong, powerful countermeasures".

Trump said he hoped the USA could work out a trade agreement with Canada, saying the two countries had a good relationship but that Americans were being taken advantage of.

Freeland said Canada's proposed tariffs on American-made goods were strategically chosen to have "minimal impact on Canadians". On Friday evening, China announced tariffs on U.S. products of an equal amount and implemented them on the same date (6 July) as the USA intends to implement tariffs on China.

"I have to point out that U.S. remarks confused right with wrong and made irresponsible accusations against China to cover up its unilateral and protectionist moves", Chinese Foreign Ministry spokesman Geng Shuang told a media briefing here today when asked for his reaction to Pompeo's comments.

"We have to change our ways, we can no longer be the stupid country, we have to be the smart country", Trump said.

The potential tariffs released on Monday are in retalitation to that statement from China.

If the tariffs the two countries have threatened to slap on each other's exports take effect, their consumers would have to pay higher retail prices.

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The world's most valuable publicly traded company does almost all of its manufacturing and assembly in China, the culmination of a long and complicated electronics supply chain that stretches around the world and ends with the Chinese-made iPhone you may be reading this story on.

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"Everyone knows ... China is the main perpetrator", he said.

In response, China has threatened what it called "comprehensive measures", raising the risk that it would target major American companies operating in China.

The Chinese Embassy in Washington did not immediately respond to a request for comment. "President Trump has a great relationship with President Xi" Jinping of China.

Last week, Mr Trump confirmed that the United States would impose 25% tariffs on $50bn worth of Chinese goods.

It could also be that he thinks China will run out of U.S. imports against which to retaliate. Since June 1, steel and aluminium imports from the European Union, Canada and Mexico have been hit with tariffs of 25% and 10%, respectively.

Wall Street has viewed the trade tensions with rising concern that they could strangle the economic growth achieved during Trump's watch.

The tariffs, which the United States government said were punishment for intellectual property theft, will be enacted in two waves.

Mr Pompeo on Monday described U.S. actions as "economic diplomacy", which, when done right, strengthens national security and global alliances, he added. "It's not easy but we're getting there", the president said. "China is good at economic stimulus".

Other reports by MaliBehiribAe

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