Trump says trade talks ‘congenial’ amid claims China tariffs help US
Beijing has vowed to retaliate after the latest tariff hike on Chinese goods came into effect.
President Donald Trump has said trade talks between China and the United States are continuing in a “very congenial manner” despite new tariffs the US imposed on 200 billion dollars (£155 billion) in Chinese imports.
Mr Trump tweeted that the increased tariffs will bring “far more wealth” to the US, although a study by the Federal Reserve Bank of New York and Columbia and Princeton universities said the burden of tariffs falls on US consumers and businesses that buy imports.
Some politicians have recently expressed concern about the effect of the tariffs on farmers.
Tariffs will bring in FAR MORE wealth to our Country than even a phenomenal deal of the traditional kind. Also, much easier & quicker to do. Our Farmers will do better, faster, and starving nations can now be helped. Waivers on some products will be granted, or go to new source!— Donald J. Trump (@realDonaldTrump) May 10, 2019
Mr Trump suggested on Twitter that money from the additional tariffs would allow the US to buy more agricultural goods from US farmers and ship it to “poor and starving” countries.
Beijing has vowed to retaliate after the latest tariff hike on Chinese goods came into effect – escalating a battle over China’s technology ambitions and other trade strains.
The Trump administration raised duties on some Chinese imports from 10% to 25%.
China’s Commerce Ministry said it would take “necessary countermeasures” but gave no details.
The increase went ahead after American and Chinese negotiators began more talks in Washington aimed at ending a dispute that has disrupted billions of dollars in trade and shaken global financial markets.
American officials accuse Beijing of backtracking on commitments made in earlier rounds of negotiations.
The talks were due to resume on Friday.
“China deeply regrets that it will have to take necessary countermeasures,” said a Commerce Ministry statement.
Shares in Asia were mixed on Friday amid renewed investor jitters about the possible impact of the trade battle on global economic growth.
The latest increase extends 25% US duties to a total of 250 billion US dollars (£192 billion) of Chinese imports.
Tariffs will make our Country MUCH STRONGER, not weaker. Just sit back and watch! In the meantime, China should not renegotiate deals with the U.S. at the last minute. This is not the Obama Administration, or the Administration of Sleepy Joe, who let China get away with “murder!”— Donald J. Trump (@realDonaldTrump) May 10, 2019
President Trump said on Sunday he might extend penalties to all Chinese goods shipped to the United States.
Beijing retaliated for previous tariff hikes by raising duties on 110 billion US dollars (£85 billion) of American imports.
But regulators are running out of US goods for penalties due to the lopsided trade balance.
Chinese officials have targeted operations of American companies in China by slowing customs clearance for their goods and stepping up regulatory scrutiny that can hamper operations.
The higher US import taxes do not apply to Chinese goods shipped before Friday.
By sea, shipments across the Pacific take about three weeks, which gives negotiators a few more days to reach a settlement before importers may have to pay the increased charges.
The negotiators met on Thursday evening. Then, after briefing President Trump on the negotiations, US trade representative Robert Lighthizer and treasury secretary Steven Mnuchin dined with the leader of the Chinese delegation, vice premier Liu He.
Mr Liu, speaking to Chinese state TV on his arrival in Washington, said he “came with sincerity”.
He appealed to Washington to avoid more tariff hikes, saying they are “not a solution” and would harm the world.
“We should not hurt innocent people,” Mr Liu said.
At the White House, President Trump said he received “a beautiful letter” from Chinese President Xi Jinping and would “probably speak to him by phone”.
The two countries are sparring over US allegations that China steals technology and pressures American companies into handing over trade secrets, part of an aggressive campaign to turn Chinese companies into world leaders in robotics, electric cars and other advanced industries.