Trump accuses China of trying to 'impact' United States election with trade war

19 September, 2018, 01:45 | Author: Billie Castillo
  • Trump hits China with $200 billion in tarrifs and threatens more if Beijing retaliates

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".

Beijing is still ready to negotiate an end to the trade tensions, it said. They rise to 25 percent on January 1. "President Trump, as shown in the North Korean affair, is able to revert himself very quickly".

Once the new round of tariffs takes effect on September 24, punitive duties will be in place on $250 billion in goods the United States buys from China - its largest source of imported merchandise.

The 10% tariff will take effect on September 24.

"Once again, I urge China's leaders to take swift action to end their country's unfair trade practices", Mr Trump said.

U.S. officials said China had been given "chance after chance" to change the trade practices considered unfair to U.S. businesses, but has "remained obdurate".

China is expected to further retaliate against the United States, and top officials have warned that could include penalizing U.S. companies that rely on Chinese components for phones, cars, televisions, and other products.

Smart watches and Bluetooth devices were removed from the tariff list, along with bicycle helmets, high chairs, children's vehicle seats, playpens and certain industrial chemicals.

"They did it with Mexico on auto tariffs and NAFTA (an agreement signed by Canada, Mexico and the US)".

"The downward spiral that we have previously warned about now seems certain to materialize", the chamber chairman, William Zarit, said in a statement.

Trump continues to ratchet up pressure on Beijing to change its trade practices.

"Our concern with these tariffs is that the US will be hardest hit, and that will result in lower USA growth and competitiveness and higher prices for US consumers", Apple said earlier in a letter commenting on the proposal.

The US Chamber of Commerce, retailers, agricultural groups and some members of Trump's own Republican party have spoken out against his tariff campaign.

"There will be great and fast economic retaliation against China if our farmers, ranchers and/or industrial workers are targeted!"

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"Business hates uncertainty. They'd rather have an imperfect trading relationship than this much chaos".

The administration earlier this month floated talks led by Mnuchin, with Liu He expected to lead the Beijing delegation.

The Government was also "participating at all levels in worldwide negotiations" to protect and improve the World Trade Organisation, he said.

"However, US companies in China have faced real and legitimate concerns for many years and so any future discussions must be based on fair and reciprocal treatment and address the need for sustainable structural reforms".

An official Chinese newspaper called for more aggressive measures to "make American pain worse" following tariff hikes by both sides on $50billion of each other's goods.

China will impose a 10 percent tariff on United States products it previously designated for a rate of 20 and 25 percent, and 5 percent tariffs on goods previously under the 5 and 10 percent rates.

The increases are in response to the U.S. announcing it will impose tariffs on Dollars 200 billion worth of Chinese-made goods starting next week.

China on Tuesday warned it would "take countermeasures", adding that the "US insists on increasing tariffs, which brings new uncertainty to the consultations between the two sides".

China's Foreign Ministry reiterated that the escalation of the trade conflict was not in anyone's interest.

But it is unclear whether Beijing will agree to come to Washington with the new tariffs set to go into effect.

White House Economic Advisor Larry Kudlow offering China an olive branch.

"Unfortunately, China has been unwilling to change its policies involving the unfair acquisition of USA technology and intellectual property".

The new taxes will hit a broad swath of products, including billions in Chinese-made voice data receivers, computer memory modules, automatic data processors, and accessories for office equipment such as copiers and banknote dispensers - instantly making widely used goods more expensive.

"We're looking at quite treacherous waters here which could considerably destabilise global economic confidence and threaten a future recession", former European trade commissioner, Peter Mandelson told Bloomberg Television.


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