Published: Wed, August 08, 2018
Money | By Bruce West

Trump promises to stay the course on tariffs

Trump promises to stay the course on tariffs

Hours before the rally, Mr Trump posted a string of tweets on the issue, saying the U.S. market is "stronger than ever", while the Chinese market "has dropped 27 per cent in last four months, and they are talking to us".

China's Finance Ministry on Friday accused the Trump administration of damaging the global economy after the USA proposed increasing duties on $200 billion of Chinese goods in the second round of a dispute over technology. Neither side is showing any sign of backing down.

The latest tariffs come as the trade war continues to escalate and Mr Trump attempts to force Xi Jining's government to change its practices. Huang Libin, a spokesman for the Ministry of Industry and Information Technology recently said there has not been any significant impact on industrial output.

But as is common with his Twitter posts, some of his claims were either unproven or incorrect. "Considering the unreasonable US demands, a trade war is an act that aims to crush China's economic sovereignty, trying to force China to be a USA economic vassal".

"Tariffs are working big time".

A piece in the Global Times, a tabloid run by the People's Daily, described the retaliatory measures as "rational" and insisted China "will not rush to compete with United States numbers". So this unifies NAFTA and U.S., Europe, Australia, Japan.

The market is not large by value compared with approximately $12 billion of USA crude that came to China a year ago, but LNG imports could shoot up as Beijing forges ahead with its plan to switch millions of households to the fuel away from coal.

The two countries have already imposed £26bn ($34bn) worth of tariffs on each others' goods as the trade war ramped up in July.

Trump's measure of success at his OH speech appeared to be how much tariffs are hurting China. "We win either way".

While the Trump administration's steel tariffs might be meant to increase domestic-steel production, bigger job losses could happen at manufacturing companies that use steel, Paglia noted.

It was the latest in a series of tariffs, with the first being imposed by Trump back in early February.

Including the new tariffs already in force, China has now identified nearly 6,000 items for higher import taxes, including liquid natural gas, soybeans, and other products. This makes the products more expensive and less attractive for USA consumers. Every country on earth wants to take wealth out of the USA, always to our detriment.

The White House is now negotiating with South Korea and the European Union regarding trade agreements for soy beans, energy products, steel and aluminum.

The dispute is part of broader US complaints about global trading conditions that have prompted Trump to raise duties on steel, aluminum, washing machines or solar panels from Canada, Europe, Japan and South Korea. But on Wednesday (1 August) the US Trade Representative said it was considering increasing this rate from 10% to 25%, with items likely to be hit including raw materials such as yarns and fabric, silk and cotton, lace and embroidery.

Kudlow, a devout free trade supporter who criticized Trump's approach before joining the White House this year, has tried to steer the president toward an embrace of an idea that every country remove all of their tariffs in a way that would still achieve conservative political goals.

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