Trump tweets about ‘stupid trade’ with China
WASHINGTON: President Donald Trump is complaining about “stupid trade” with China, saying that Chinese tariffs for US cars were much higher than US tariffs for Chinese automobiles.
In a tweet yesterday morning, Trump said that when a Chinese-made vehicle was sent to the US, the tariff was only 2.5%, while American cars exported to China were slapped with a 25% tariff. Trump asks: “Does that sound like free or fair trade. No, it sounds like STUPID TRADE.”
China charges total duties of 25% on most imported cars – a 10% customs tariff plus a 15% auto tax. Since December 2016, Beijing has also charged an additional 10% on “super-luxury” vehicles priced above 1.3 million yuan (R2.4m).
Investors across the globe are bracing for uncertain markets over an escalating trade dispute between the US and China and as President Donald Trump tries to downplay fears of a trade dispute.
Trump is suggesting that Beijing will ease trade barriers “because it is the right thing to do” and that the economic superpowers can settle the escalating conflict.
But as Trump tries to project confidence that a dispute that has rattled financial markets, consumers and businesses can be soon resolved, his top economic advisers are offering mixed messages as to the best approach with China.
Beijing has threatened to retaliate if Washington follows through with its proposed tariffs.
Trump hasn’t explained why, amid a week of economic saber-rattling between the two countries that shook global markets, he feels confident a deal can be made. – AP