Trump had warned in a statement yesterday that if China takes retaliatory action against USA farmers or industries, “we will immediately pursue phase three, which is tariffs on approximately US$267 billion of additional imports”.
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The Trump’s administration’s proposed 10 per cent tariff on $200 billion worth of Chinese goods is set to come into effect later in September, increasing to 25 per cent at the end of 2018, a move that will sharply escalate the American trade war with Beijing.
United States President Donald Trump on Tuesday accused China of seeking to influence upcoming U.S. elections by taking aim at his political support base in the countries’ escalating trade war.
The president had warned in a statement on Monday evening that such action would take the form of tariffs on the remaining US$267 billion of Chinese imports, further expanding the already unprecedented scope of the trade war.
After the administration announced the additional tariffs on Monday, Trump took to Twitter early Tuesday to say that China is trying to influence US elections by going after USA industry. “Hopefully, this trade situation will be resolved, in the end, by myself and President Xi of China, for whom I have great respect and affection”, Trump said.
Washington has already imposed 25 percent duties on $50 billion of Chinese goods over what it alleges are unfair trade practices.
Trump warned on Monday that if China takes retaliatory action against USA farmers or industries, “we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports”.
Trump had urged his advisers to press forward with the $200 billion round, even as Washington and Beijing worked to restart trade talks.
The 297 items removed from the list include certain consumer electronics such as smart watches and Bluetooth devices; certain chemical inputs for manufacturered goods, textles and agriculture; certain health and safety products such as bicycle helmets and child safety furniture including carseats and playpens.
“If the vice premier does go to the USA, we can reasonably suspect he has a reasonable offer, but at this point, I would think the likelihood is low”, a USA business representative in Beijing said.
Trump also accused Chinese corporations of stealing American technology and intellectual property.
Last year, Southern California ports handled $173bn in Chinese imports, about a third of all goods shipped from China to the US, CNBC reported. He estimated that the new round of tariffs could slow GDP growth by 0.7 percent.
China is reviewing plans to send a delegation to Washington for fresh talks in light of the United States action, the South China Morning Post reported on Tuesday, citing a government source in Beijing.
Sohn said the Trump administration is pursuing a legitimate goal of getting China to stop violating global trade rules but that it should have enlisted support from other trading partners, such as the European Union, Canada and Mexico, and presented Beijing with a united front.
But that doesn’t mean China won’t respond to the Trump administration’s tariffs.
“China has had many opportunities to fully address our concerns”, Mr Trump said in a statement.
At the root of the trade war are US complaints about China’s plans to try to overtake USA technological supremacy. “As such this is a real ratcheting up of trade tensions that certainly heightens the risks for global and United States growth”. Beijing has warned that it would hit an additional $60 billion in American products if Trump ordered more tariffs.
Separately, the Chinese Foreign Ministry too hinted that talks with the USA could stall.
“They want to make a deal”, Trump said.
The US Chamber of Commerce, retailers, agricultural groups and some members of the Republican Party have spoken against his tariff campaign.
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Sohn said the Trump administration was pursuing a legitimate goal to get China to stop violating worldwide trade rules.
