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Trump threatens additional $200bn in tariffs on China

20 June, 2018, 00:37 | Author: Kristen Ingram
  • Trump said that if China responds to this fresh round of tariffs then he will move to counter

This after President Trump slapped tariffs on $50 billion worth of goods last Friday.

If the United States goes ahead with the new $200 billion tariffs, they are more likely to be directly felt by individuals than the previous round.

In response, Beijing confirmed during the weekend it would bring in tit-for-tat tariffs on $34 billion of U.S. imports next month.

Trump's proposed new tariffs would amount to the latest round of punitive steps in an escalating dispute between the world's two largest economies.

Apple is also concerned that the Chinese government will point to the way that Huawei has been accused of being a threat to USA national security, and take some type of action against Apple. "The United States will no longer be taken advantage of on trade by China and other countries in the world". The next round will nearly certainly have to tax some consumer goods to reach the $200 billion target, perhaps making them less politically palatable.

"While the White House is chasing some imaginary trade deficit, it will have very real consequences for the 1.3 million men and women of our industry".

The president asserted in a statement Monday night that China is determined "to keep the United States at a permanent and unfair disadvantage". During the 2016 election campaign, he had promised to use tariffs to cut the U.S. trade deficits.

The US president said he had asked officials to target $200 billion (€172 billion) worth of imports - and threatened to increase taxes on Chinese exports to the US even further should he meet resistance from Beijing. "China's government will step up an already intensive effort to determine whether Trump has the political strength to carry out his threats, while working to maximize pressure on U.S. interests to force him to back down and accept a compromise".

-Chinese trade means Beijing doesn't import enough American goods to match Trump's latest threat.

In a briefing with reporters Tuesday morning, White House trade adviser Peter Navarro downplayed the notion that the USA was in a "trade war" with China.

"We are seeing the dollar and yen outperforming most of their peers especially those riskier, high-yielding currencies and those currencies more affected by disruptions in global trade", said Omer Esiner, chief market strategist with Commonwealth Foreign Exchange in Washington.

Still, U.S. companies had $92.5 billion worth of investments in China as of 2016, many of which could face retaliation by Chinese regulators if Beijing is looking for ways to exert pressure on the United States.

But just because Beijing can't retaliate reciprocally, doesn't mean it can't hit back proportionately: China can still disrupt USA supply chains by freezing activities at select ports, or decline to approve acquisitions sought by American companies.

Mr Trump has threatened to put tariffs on an extra $200bn (£141bn) of Chinese goods, sparking fears of a trade war.

"Rather than altering those practices, it is now threatening United States companies, workers, and farmers who have done nothing wrong", Trump said.

In an interview with CNN earlier this month, Apple CEO Tim Cook said he didn't expect a full-blown trade war to break out and dismissed the notion that iPhones, which are assembled in China, would end up subject to tariffs.

Since June 1, steel and aluminium imports from the European Union, Canada and Mexico have been hit with tariffs of 25 per cent and 10 per cent, respectively.

"All they can do is impose higher tariffs on a smaller subset of products", he said. "Except a few defensives that are outshining, there is real nervousness within the market", said Peter Cardillo, chief market economist at Spartan Capital Securities in NY.

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