Trade war ‘will hurt Beijing’

BEIJING will be “hurt very badly” unless it makes a deal on trade with the US because increased US tariffs will make China’s imports “too expensive”, US President Donald Trump said yesterday.

“I say openly to President Xi (Jinping) and all of my many friends in China, that China will be hurt very badly if you don’t make a deal because companies will be forced to leave China for other countries. Too expensive to buy in China. You had a great deal, almost completed, and you backed out!” Trump posted on Twitter.

The US president said the “unexpectedly good first quarter 3.2% GDP was greatly helped by tariffs from China”.

Beijing will not give in to external pressure when it comes to protecting its own interests, Chinese Foreign Ministry spokesman Geng Shuang said earlier. Last week, Trump ordered the increase of tariffs on all remaining imports from China, valued at nearly $300 billion (about R4.3 trillion).

China yesterday announced it was raising tariffs on $60bn in US goods in retaliation for the latest penalties on its exports announced by Trump. The Finance Ministry said the penalty duties of 5% to 25% on hundreds of US products including batteries, spinach and coffee would take effect on June 1.

Before raising tariffs, Trump said trade talks with China would continue.