• Sunday, July 21, 2019

Crazy! Trump fires back at Beijing with threat of new tariffs on $200 billion in Chinese goods!

Discussion in 'China & Far East' started by Clutch, Jun 19, 2018.

  1. Clutch

    Clutch ELITE MEMBER

    Messages:
    8,072
    Joined:
    Aug 3, 2008
    Ratings:
    +6 / 9,753 / -1
    Trump fires back at Beijing with threat of new tariffs on $200 billion in Chinese goods


    Nyshka Chandran | @nyshkac
    Published 54 Mins Ago Updated 18 Mins AgoCNBC.com
    • Washington is looking to impose more tariffs on Chinese goods.
    • On Friday, President Donald Trump's administration announced that it would impose a 25 percent tariff on up to $50 billion of Chinese products.
    President Donald Trump has requested the United States Trade Representative to identify $200 billion worth of Chinese goods for additional tariffs at a rate of 10 percent.

    [​IMG]
    Getty Images
    President Donald Trump and China's President Xi Jinping (not shown) make a joint statement at the Great Hall of the People on November 9, 2017 in Beijing, China.
    The new duties will go into effect "if Chinarefuses to change its practices, and also if it insists on going forward with the new tariffs that it has recently announced," the president said in a statement provided by the White House late on Monday.

    The move comes after the U.S. on Friday announced that it would impose a 25 percent tariff on up to $50 billion of Chinese products. Tariffs on an initial list of goods worth some $34 billion will kick in on July 6.


    Monday's proposed measure is in response to Beijing's decision to raise tariffs on U.S. exports, the White House statement said.

    U.S. stock index futures fell following the news. Dow Jones Industrial Average futures were down 0.63 percent during early Asian trade while S&P 500 e-mini futures eased 0.61 percent.

    See the full statement from Trump here:

    THE WHITE HOUSE

    Office of the Press Secretary

    FOR IMMEDIATE RELEASE

    June 18, 2018

    Statement from the President Regarding Trade with China

    On Friday, I announced plans for tariffs on $50 billion worth of imports from China. These tariffs are being imposed to encourage China to change the unfair practices identified in the Section 301 action with respect to technology and innovation. They also serve as an initial step toward bringing balance to our trade relationship with China.

    However and unfortunately, China has determined that it will raise tariffs on $50 billion worth of United States exports. China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology. Rather than altering those practices, it is now threatening United States companies, workers, and farmers who have done nothing wrong.

    This latest action by China clearly indicates its determination to keep the United States at a permanent and unfair disadvantage, which is reflected in our massive $376 billion trade imbalance in goods. This is unacceptable. Further action must be taken to encourage China to change its unfair practices, open its market to United States goods, and accept a more balanced trade relationship with the United States.

    Therefore, today, I directed the United States Trade Representative to identify $200 billion worth of Chinese goods for additional tariffs at a rate of 10 percent. After the legal process is complete, these tariffs will go into effect if China refuses to change its practices, and also if it insists on going forward with the new tariffs that it has recently announced. If China increases its tariffs yet again, we will meet that action by pursuing additional tariffs on another $200 billion of goods. The trade relationship between the United States and China must be much more equitable.

    I have an excellent relationship with President Xi, and we will continue working together on many issues. But the United States will no longer be taken advantage of on trade by China and other countries in the world.

    We will continue using all available tools to create a better and fairer trading system for all Americans.



    ------------------------------
    China accuses Trump of 'blackmail' after new tariffs threat

    AFPJune 19, 2018
    Facebook Count15
    Twitter Share
    19
    Beijing on Tuesday accused Donald Trump of “blackmail” and warned it would retaliate in kind after the US president threatened to impose fresh tariffs on Chinese goods, pushing the world's two biggest economies closer to a trade war.

    Trump said on Monday he had asked the US Trade Representative to target $200 billion worth of imports for a 10 percent levy, citing China's “unacceptable” move to raise its own tariffs.

    He added he would identify an extra $200 billion of goods — for a possible total of $450 billion, or most Chinese imports — “if China increases its tariffs yet again”.

    “Further action must be taken to encourage China to change its unfair practices, open its market to United States goods and accept a more balanced trade relationship with the United States,” Trump said in a statement.

    ARTICLE CONTINUES AFTER AD
    Last week, he announced 25 percent tariffs on $50 billion in Chinese imports, prompting Beijing to retaliate with matching duties on US goods.

    The US leader warned Friday of “additional tariffs” should Beijing hit back with tit-for-tat measures.

    “The trade relationship between the United States and China must be much more equitable,” he said in explaining his latest decision.

    “I have an excellent relationship with President Xi (Jinping), and we will continue working together on many issues.

    But the United States will no longer be taken advantage of on trade by China and other countries in the world.”

    China's commerce ministry immediately responded by saying the US “practice of extreme pressure and blackmail departed from the consensus reached by both sides during multiple negotiations and has also greatly disappointed international society”.

    “If the US acts irrationally and issues a list, China will have no choice but to take comprehensive measures of a corresponding number and quality and take strong, powerful countermeasures.”

    The news hit stock markets in Asia, where Shanghai shed three percent in the morning, Hong Kong lost more than two percent and Tokyo was one percent lower.

    Trump is moving forward with the measures after months of sometimes fraught shuttle diplomacy in which Chinese offers to purchase more American goods failed to assuage his grievances over a widening trade imbalance and China's aggressive industrial development policies.

    China had offered to ramp up purchases of American goods by $70 billion to help cut its yawning trade surplus with the United States, whereas Trump had demanded a $200 billion deficit cut.

    'Unacceptable'
    The China trade offensive is only one side of Trump's multi-front battle with the United States' economic partners as he presses ahead with his protectionist “America First” agenda.

    Since June 1, steel and aluminium imports from the European Union, Canada and Mexico have been hit with tariffs of 25 percent and 10 percent, respectively.

    “This latest action by China clearly indicates its determination to keep the United States at a permanent and unfair disadvantage, which is reflected in our massive $376 billion trade imbalance in goods,” Trump said of China's retaliatory tariffs.

    “This is unacceptable.” Two decades ago, China's economy was largely fuelled by exports, but it has made progress in rebalancing towards domestic investment and consumption since the global financial crisis erupted last decade — limiting the damage trade tariffs could inflict on Beijing.

    Still, strong exports this year have lifted the economy, which is now showing signs of losing steam under the weight of Beijing's war on debt, launched to clean up financial risks and rein in borrowing-fuelled growth.

    Initially, 545 US products valued at $34 billion will be targeted by China, mimicking the Trump administration's tariff rollout.

    Beijing wants to “demonstrate that things will be done their way or not at all,” said Christopher Balding, an economics professor at Shenzhen's HSBC Business School, who believes Chinese policymakers prefer demonstrations of “power and control” over “technical policy rightness.”

    “It is a game of chicken,” Balding said.

    So far Beijing has targeted major American exports to China such as soybeans, which brought in $14 billion in sales last year, and are grown in states that supported Trump during the 2016 presidential election, as well as other politically important products.

    Officials also drew up a second list of $16 billion in chemical and energy products to hit with new tariffs, though China did not announce a date for imposing them.

    More American targets are likely to follow as soon as the Trump administration follows through with publishing an expanded tariff list.


     
    Last edited: Jun 20, 2018
  2. Kiss_of_the_Dragon

    Kiss_of_the_Dragon ELITE MEMBER

    Messages:
    10,276
    Joined:
    Aug 20, 2011
    Ratings:
    +11 / 17,567 / -0
    Country:
    China
    Location:
    China
    interesting, this is like gambling who shall be the first to chicken out in this poker game, we shall see how much cards both China and US carry in this trade war...let see if China has the gut to meet US's threat :lol:. China still holding US's corporate investment in China such card to play: Ford, Apple...either China withstand the trade war or be collapse like Japan after the plaza accord.
     
    • Thanks Thanks x 7
  3. qwerrty

    qwerrty SENIOR MEMBER

    Messages:
    2,840
    Joined:
    May 12, 2010
    Ratings:
    +0 / 6,995 / -9
    his daughter's business is in chinese hand too. china should start poking around and see how he'll react :D
     
    • Thanks Thanks x 4
  4. bolo

    bolo SENIOR MEMBER

    Messages:
    2,696
    Joined:
    Sep 27, 2013
    Ratings:
    +0 / 2,960 / -13
    China announced it would not allow the Trump name and its affiliates to sell in China effective July 1st.
     
    • Thanks Thanks x 2
  5. rambro

    rambro FULL MEMBER

    Messages:
    1,654
    Joined:
    Aug 28, 2017
    Ratings:
    +0 / 2,727 / -0
    Country:
    Malaysia
    Location:
    Malaysia
    Let them fight!

    Fight x3
     
    • Thanks Thanks x 2
  6. The SC

    The SC ELITE MEMBER

    Messages:
    17,888
    Joined:
    Feb 13, 2012
    Ratings:
    +18 / 18,281 / -0
    Country:
    Canada
    Location:
    Canada
    Escalation.. is the least to say..
    Senate Also refused Trump's attempt to reduce the sanction on Chinese ZTE.. it will be sanctioned as before..
     
  7. Mista

    Mista FULL MEMBER

    Messages:
    1,997
    Joined:
    Jun 9, 2016
    Ratings:
    +3 / 2,038 / -0
    Country:
    Singapore
    Location:
    Singapore
    Trump is baiting China into an economic war and crippling Chinese growth by escalating trade tensions. He knows that China can't response with equal retaliation because the total goods and services exported to China is only $180b last year. Targeting other economic interest will give the US excuse to escalate the trade war into an economic war.

    Don't fall for it.
     
    • Thanks Thanks x 6
  8. eldarlmari

    eldarlmari BANNED

    Messages:
    3,510
    Joined:
    Mar 24, 2012
    Ratings:
    +2 / 5,853 / -5
    Country:
    Singapore
    Location:
    Singapore
    not only his daughter's- his own business is on the line too.
     
    • Thanks Thanks x 2
  9. Kiss_of_the_Dragon

    Kiss_of_the_Dragon ELITE MEMBER

    Messages:
    10,276
    Joined:
    Aug 20, 2011
    Ratings:
    +11 / 17,567 / -0
    Country:
    China
    Location:
    China
    Whether we like it or not US will keep pushing to demand more and more concession from China, US will certainly not limit itself to the tariff war but it will expand to other domain if China chose to sit idle. I'm pretty sure that China has made the calculation and simulation on the impact of escalading the trade war and how far China can to go. Now the interesting question is in the worst case scenario that both China and US stop trade to each other, will China survive or will US economy will collapse as well?.
     
    • Thanks Thanks x 4
  10. dreamer4eva

    dreamer4eva BANNED

    Messages:
    244
    Joined:
    Aug 13, 2015
    Ratings:
    +0 / 210 / -0
    Country:
    India
    Location:
    Australia
    I totally concur. China can only escalate to a certain extent as balance of trade at the moment is significantly in China's favour. The only area where China can really hurt US is Soybeans import as they are America's biggest market, and directly impacts Trumps core electorate aka farmers.
     
  11. Viva_Viet

    Viva_Viet SENIOR MEMBER

    Messages:
    4,188
    Joined:
    Jun 26, 2011
    Ratings:
    +0 / 1,730 / -4
    Nice, and 90% CN will be in chaos in 2023 as we predicted. Time to Soviet-US to tear CN to pieces and make billion of billion USD from selling weapon to CN resistances forces .
     
    • Thanks Thanks x 1
  12. Mista

    Mista FULL MEMBER

    Messages:
    1,997
    Joined:
    Jun 9, 2016
    Ratings:
    +3 / 2,038 / -0
    Country:
    Singapore
    Location:
    Singapore
    Lol Trump is easy to agitate but also easy to placate. He's the type that will cut the nose off to spite the face. Just issue some statement to stoke his ego and he will be happy to brag about his accomplishments. But promising equal retaliation and making tough statements in the media will just make him look bad and toughen his position.

    Trade is just one aspect of the US-China economic relationship. There are other aspects such as access to technology and knowledge through investments and universities. Then there's also the global financial system which the US dominates. These areas are far more critical to the overall Chinese economy than the trade surplus you enjoy. China will be biting the bait if she tries to retaliate in other economic aspects.

    IMO it's still too early for China to challenge the US economically. It will be wiser to bide your time like Deng said. The longer the better, until it's absolutely necessary.
     
  13. My-Analogous

    My-Analogous SENIOR MEMBER

    Messages:
    6,448
    Joined:
    Feb 9, 2009
    Ratings:
    +2 / 4,878 / -0
    Country:
    Pakistan
    Location:
    Saudi Arabia
    First pay them back 1tillion dollar then talk big
     
  14. Viva_Viet

    Viva_Viet SENIOR MEMBER

    Messages:
    4,188
    Joined:
    Jun 26, 2011
    Ratings:
    +0 / 1,730 / -4
    Your king XI is stupid, at least 1 billion CNese hate him when he gave him and his family the right to rule CN for good. at least 1 billion CNese will seek help/support/protection from TW-US to teach your stupid king a lesson in 2023 :cool:
     
  15. Jackdaws

    Jackdaws BANNED

    Messages:
    9,667
    Joined:
    Jan 20, 2010
    Ratings:
    +6 / 7,922 / -39
    Country:
    India
    Location:
    India
    Trump is really a completely chaotic character. He just likes to bully others but that's not how economies work. Not to say, I don't enjoy watching China squirm but still, it is just bizarre.