The News Herald (Willoughby, OH)
Trump vows response to China tariffs on U.S.
WASHINGTON >> President Donald Trump declared Friday that he had “hereby ordered” American companies with operations in China “to immediately start looking for” an alternative after Beijing announced a series of retaliatory tariffs.
But as markets in the U.S., Asia and Europe tumbled, the White House offered no further details or explanation of Trump’s intentions.
Instead, the president tweeted that he would be “responding to China’s Tariffs this afternoon.”
“This is a GREAT opportunity for the United States” he wrote.
The U.S. has said it plans to impose 10% tariffs on $300 billion of Chinese goods in two steps, on Sept. 1 and Dec. 15. China responded Friday with new tariffs on $75 billion of U.S. products in retaliation, deepening a conflict over trade and technology that threatens to tip a weakening global economy into recession.
China also will increase import duties on U.S.-made autos and auto parts, the Finance Ministry announced. Tariffs of 10% and 5% will take effect on two batches of goods on Sept. 1 and Dec. 15, the ministry said in a statement. It gave no details of what goods would be affected but the timing matches Trump’s planned duty hikes.
The announcement comes as leaders of the Group of 7 major economies prepare to meet in France this weekend.
Washington is pressing Beijing to narrow its trade surplus and roll back plans for governmentled creation of global competitors in robotics, electric cars and other technology industries.
On Friday, Trump tweeted, “Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing... your companies HOME and making your products in the USA. I will be responding to China’s Tariffs this afternoon.”
The White House did not immediately respond to questions about what authority the president believes he has to order private companies to change their business practices. And it remained unclear hours after his tweets exactly what he had in mind.
Trump was meeting Friday morning with his trade advisers, according to two people with knowledge of the situation. They were discussing various potential options, including the possibility of imposing a 25% tariff on all Chinese exports to America, one of the people said. They spoke to AP on condition of anonymity because they were not authorized to disclose details of closed-door meetings.
Peter Navarro, who advises Trump on trade policy, tried to downplay the impact of Chinese tariff hikes ahead of the meeting. He said they were “well anticipated” and would only strengthen Trump’s resolve.
China’s government appealed to Trump this week to compromise in order to reach a settlement.
That came after Trump warned that the American public might need to endure economic pain in order to achieve long-term results.
The United States, Europe, Japan and other trading partners say Beijing’s development plans violate its market-opening commitments and are based on stealing or pressuring foreign companies to hand over technology. Some American officials worry they might erode U.S. industrial leadership.
Chinese leaders have offered to alter details but are resisting giving up a development strategy they see as a path to prosperity and global influence.
The talks are deadlocked over how to enforce any deal. China insists Trump’s punitive tariffs have to be lifted as soon as an agreement takes effect.