Trump threatens more China tariffs
• With levies pending on $200bn of imports, president points to another $267bn
US President Donald Trump warned on Friday that he was ready to slap tariffs on virtually all Chinese imports into the US, threatening duties on another $267bn of goods on top of $200bn in imports primed for levies in coming days.
US President Donald Trump warned on Friday that he is ready to slap tariffs on virtually all Chinese imports into the US, threatening duties on another $267bn of goods on top of $200bn in imports primed for levies in coming days.
The moves would sharply escalate Trump’s trade war with Beijing over his demands for major changes in economic, trade and technology policy. China has threatened retaliation, which can include action against US companies operating there.
Hours after a public comment period closed on his $200bn China tariff list, Trump told reporters that he is “being strong on China because I have to be. The $200bn we are talking about could take place very soon depending on what happens with them. To a certain extent it’s going to be up to China,” Trump said. “And I hate to say this, but behind that is another $267bn ready to go on short notice if I want. That totally changes the equation.”
Stock prices slipped after his comments, with the SP 500 off 0.2%, while China’s offshore trade yuan currency fell against the dollar.
There was no immediate reaction to Trump’s comments from the Chinese government, and the threat of more tariffs had not been reported by mainstream state-owned Chinese media as of Saturday evening.
Trump has already imposed 25% tariffs on $50bn worth of Chinese goods, mostly industrial machinery and intermediate electronics parts, including semiconductors.
The $200bn list, which includes some consumer products such as cameras and recording devices, luggage, handbags, tyres and vacuum cleaners, would be subject to tariffs of 10%-25%. Cellphones, the biggest US import from China, have so far been spared but would be engulfed if Trump activates the $267bn tariff list.
Trump’s threatened tariffs, now totalling $517bn in Chinese goods, would exceed the $505bn in goods imported from China in 2017. Imports from China for the year to July were up nearly 9% over the same period of 2017, according to US Census Bureau data.
On Friday White House economic adviser Larry Kudlow told Bloomberg Television that the administration would evaluate public comments before making decisions on the $200bn tariff list.
The US trade representative’s office received nearly 6,000 comments and held seven days of public hearings on the proposed levies. Most comments were from companies seeking to remove products from the tariff list, arguing that there were few, if any, alternative sources and that the duties would cause financial hardship in households. Comparatively few applauded the tariffs.
Major technology company Apple said a “wide range” of its products would be hit by the tariffs but not its iPhone. It said in a late submission that its AirPods headphones, some of Apple’s Beats headphones and its new HomePod smart speaker would face levies, causing its shares to slip in late trading.
“Our concern with these tariffs is that the US will be hardest hit, and that will result in lower US growth and competitiveness and higher prices for US consumers,” Apple said in the letter.
Retailers have kept high-profile consumer electronics such as cellphones and television sets off previous tariff lists. But David French, top lobbyist for the National Retail Federation, whose members include Amazon.com and Macy’s, said nearly every consumer item could be affected if Trump follows through on all threatened tariffs.
“The Chinese aren’t paying these tariffs. American families are going to pay these tariffs.
“These are taxes and they’re going to find their way into the [pockets] of folks around the country,” French said.
Kudlow told CNBC the administration is still talking with China about trade issues but so far China has not met US requests.