Trump promises to stay the course on tariffs

Trump promises to stay the course on tariffs

Trump promises to stay the course on tariffs

President Donald Trump is defending his tariffs after China threatened an additional $60 billion levied on American goods amid an escalating trade war between the two economic giants.

China's state media said on Saturday the government's retaliatory tariffs on $60 billion of US goods showed rational restraint and they accused the United States of blackmail.

"Because the USA side has repeatedly escalated the tension, disregarding the interests of enterprises and consumers of both sides, China has to take necessary countermeasures to defend the country's dignity and the interests of the Chinese people, defend free trade and the multilateral system, and defend the common interests of all countries in the world", the ministry said.

"After years of rebuilding foreign countries, we are finally rebuilding our country", said Trump, who tweeted about how he is using tariffs to negotiate fair and reciprocal trade deals before the rally.

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Lu Xiang, an expert on U.S. As the Financial Times noted, the fight has "become about the two countries' economic futures, with United States officials portraying their aggressive approach to Beijing as a way to protect America's economic future from a China that is intent on leading the world in areas such as artificial intelligence and robotics".

Beijing plans to impose an additional 5% in tariffs on about 600 kinds of products including planes and computers, another 10% on nearly 1 000 products including wigs and textiles, an extra 20% on more than 1 000 items including some chemicals, cookers and paper, and an additional 25% on over 2 400 products such as meat, wheat, wine and LNG, according to the statement. It echoes China's response to the previous round of tariffs last month, when the US and China imposed tariffs on $34 billion worth of each others' goods. "Other countries use Tariffs against, but when we use them, foolish people scream!" Over time, USA companies are likely to buy fewer products from China and elsewhere as they look for alternative suppliers.

The Chinese government has said that it will make a final decision on if, when, and how these tariffs will be implemented next month.

Some say President Trump is trying to raise pressure on China ahead of key mid-term elections at home in November.

The US already imposed additional tariffs on $34 billion worth of Chinese goods earlier in July, and China has responded in kind.

The US and China implemented tariffs on $46 billion worth of each others' goods in July. Beijing accused the United States of starting a trade war.

Chinese officials have suggested in recent weeks that if the United States proceeds with tariffs on a very wide range of Chinese goods, Beijing may also retaliate against the Chinese-owned operations of big US companies.

In terms of actual tariffs, or any other "trade" measure, the Trump-Juncker announcement was mostly a public relations stunt for both parties created to placate their domestic critics.

The Chinese are unable to match US tariffs on a dollar-per-dollar basis but Beijing can make it hard for USA companies doing business in China.

Trade tensions between the USA and China have been escalating for months, driven by President Trump's aggressive rhetoric and policy positions. The news came just after U.S. Secretary of State Mike Pompeo met with Chinese Foreign Minister Wang Yi in Singapore. "It has seriously violated the principles of the World Trade Organisation", Hong Kong-based South China Morning Post quoted the statement as saying.

This latest move comes after it emerged Donald Trump's administration is considering hitting £154bn ($200bn) of Chinese imports with additional levies.

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