Trump threatens tariffs on $267 bn Chinese imports
Us President Donald Trump said he was ready to impose tariffs on an additional $267 billion in Chinese goods on short notice, on top of a proposed $200 billion that his administration is putting the final touches on.
The implementation of tariffs on $200 billion of products from China “will take place very soon depending on what happens,” Trump told reporters on Air Force One on Friday. “I hate to do this, but behind that there is another $267 billion ready to go on short notice if I want.”
US stocks erased gains after Trump’s remarks, with the S&P 500 Index falling by 0.3 per cent to the lowest in two weeks by 12.37 pm (10.07 pm IST) in New York. Trump latest tariffs threats, if he follows through, would more than cover the value of all goods the US buys from China, according to US government data from last year. The US imported $505 billion of Chinese products in 2017, Census Bureau figures show.
The Trump administration has already slapped duties on $50 billion of Chinese exports since July, which spurred immediate in-kind retaliation from Beijing. China has said it would be forced to retaliate to all of the US’s tariff measures, fanning concerns that a deepening trade war could dent the global economic outlook.
Members of the public had until Thursday to comment on the administration’s plan to slap tariffs on $200 billion of Chinese goods, ranging from bicycles and baseball gloves to digital cameras, paving the way for Trump to announce the tariffs as early as Friday. There’s no final decision on that round of tariffs as the US Trade Representative’s office continues to “run their process,” White House Deputy Press Secretary Lindsay Walters said on Friday.
The president’s tough line contrasted with remarks earlier from White House economic adviser Larry Kudlow, who left open the possibility of a negotiated solution to the trade dispute, but said China must show it’s open to compromise.
While China’s response to US demands has been unsatisfactory, Trump is still speaking to Chinese President Xi Jinping, and would be open to meeting in person, said Kudlow, director of the White House’s National Economic Council. An opportunity could take place when world leaders gather at the UN General Assembly in New York this month and the Group of 20 summit in Argentina in November, he said.
“It’s never too late to make good trade policy,” said Kudlow. “But I will say this: the world trading system is broken.” Trump is “dead serious” in his determination to push China to reform its trade policies, he added. Trump is getting a last-minute earful from prominent technology companies and retailers as he considers whether to follow through with his plan to ratchet up tariffs on Chinese exports.