Trade war puts US, China on the brink
China said it hoped Washington would ‘pull back from the brink’
Saying China wasn’t afraid of a trade war, Beijing urged Washington on Friday to “pull back from the brink” after US President Donald Trump announced planned tariffs on up to $60 billion in Chinese goods. Saying it would be the “first of many” trade actions, Trump signed the order that could also result in restrictions on Chinese investment in the United States.
BEIJING— China urged the United States on Friday to “pull back from the brink” after President Donald Trump announced planned tariffs on up to $60 billion in Chinese goods.
Saying it would be the “first of many” trade actions, Trump signed the order that also could result in restrictions on Chinese investment in the US.
“We have a tremendous intellectual property theft situation going on,” Trump said as he signed the new trade order, which could include duties as high as 25 percent.
Trade war
US Trade Representative Robert Lighthizer is due to publish a list of the products that could be hit with tariffs within two weeks, followed by a period of consultations.
Beijing has repeatedly warned that trade wars benefit no one but it will not stand idly by as Wash- ington imposed punitive measures.
“China doesn’t hope to be in a trade war, but is not afraid of engaging in one,” the Chinese commerce ministry responded in a statement.
“China hopes the United States will pull back from the brink, make prudent decisions, and avoid dragging bilateral trade relations to a dangerous place.”
China as a friend
Though the White House has said the planned tariffs were a response to China’s “economic aggression,” Trump said he views China as “a friend.”
A Chinese commerce ministry official said both sides were in touch, and communication channels were smooth.
Meantime, China showed readiness to retaliate by declaring plans to levy additional duties on up to $3 billion of US imports including fresh fruit, wine and nuts in response to imports tariffs Trump announced earlier this month on steel and aluminum, which were due to go into effect on Friday.
Trouble for all
The inevitable fall in demand from a full-blown trade war would spell trouble for all the economies supplying the United States and China.
“The upshot is that today’s (US) tariffs amount to no more than a slap on the wrist for China,” economist Mark Williams of Capital Economics, wrote in a note. “China won’t change its ways. Worries about escalation therefore won’t go away.”