Published: Mon, August 06, 2018
Worldwide | By Lisa Hogan

Tariffs working in trade war with China, says Trump

Tariffs working in trade war with China, says Trump

The commerce ministry issued a statement saying the new duties would be applied if Washington pulled the trigger on President Donald Trump's threat to raise tariffs on $200 billion worth of Chinese goods. He told trade officials this week to consider raising that to 25 percent.

The U.S. has imposed tariffs targeting aerospace, robotics and other forms of technology, while China retaliated with tariffs on agricultural products, seafood and cars, among other things.

But China exports far more to the United States than the other way round, making it more challenging for the country to hit back against usa tariffs. However, there's been little indication thus far that the tariffs will provide such a surplus in funding, and the national debt has continued to rise under the Trump administration.

"China is forced to take countermeasures", said a ministry statement. The deficit in goods trade with China also rose.

Also, tariffs on Dollars 34 billion worth of Chinese goods were levied last month.

"I think most of our trade team will tell you we're moving close on Mexico".

Talks with China and Canada, however, have remained very frosty, and Trump has promised to punish both economies if he doesn't get his way. Kudlow suggested Friday that China is letting its currency fall to offset losses from the trade war, though he added that the decline is partly due to weak economic fundamentals.

Trump apparently believes he can control the response of United States trading partners to his threats and intimidations, and that he can conclude token trade deals, if necessary, to avoid falling over the trade cliff of currency devaluations.

In terms of Trump's claim that money raised from the tariffs will help pay down the debt, the United States has a debt of over $21 trillion.

President Trump vowed Saturday to continue imposing tariffs as a central part of his economic agenda and called his critics "fools", pivoting sharply away from the free-trade message that senior advisers had tried to erect in recent weeks. In exchange, Juncker offered to buy more USA soybeans and United States natural gas at some point in the future. The US S&P 500 index, a broad measure of major US companies, has yet to regain highs made in January, just before the escalation of trade tensions initiated by the US.

U.S. spirits and wine giant Brown-Forman has said it will increase the price of Jack Daniel's and other whiskeys in some European countries, according to media reports. The US wants concessions from China that it is not demanding from NAFTA, Europe and other allies.

"China's economy is much less dependent on trade now and on trade with the USA than it used to be", says Linda Lim, a professor of corporate strategy and worldwide business at the University of MI, told Zarroli.

The Post reported that China and the United States held unofficial talks last week but a deep and mutual distrust continues to hamper efforts to de-escalate their trade dispute.

What has the USA defence and intelligence establishment especially anxious is China plans to leapfrog the United States in nextgen technologies like 5G wireless, Artificial Intelligence, and Cybersecurity. The "best news", he said, was that "we are coming together with the European Union to make a deal with them". But what the USA really means is nextgen military-capable software intellectual property.

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