Trump threatens new tariffs on Chinese imports
The president said they will come into force if China refuses to change its practices.
President Donald Trump has directed the US Trade Representative to prepare new tariffs on 200 billion dollars (£150 billion) in Chinese imports as the two nations moved closer to a potential trade war.
The tariffs, which Mr Trump wants set at a 10% rate, would be the latest round of punitive measures in an escalating dispute over the large trade imbalance between the two countries.
Mr Trump recently ordered tariffs on 50 billion dollars in Chinese goods in retaliation for intellectual properly theft. The tariffs were quickly matched by China on US exports.
“China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology,” MR Trump said in a statement announcing the new action.
“Rather than altering those practices, it is now threatening United States companies, workers, and farmers who have done nothing wrong.”
Sorry, we cannot let our friends, or enemies, take advantage of us on Trade anymore. We must put the American worker first!— Donald J. Trump (@realDonaldTrump) June 11, 2018
Mr Trump added: “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.”
China’s Commerce Ministry criticised the latest threat of tariffs, saying it was an “act of extreme pressure and blackmail that deviates from the consensus reached by both parties after many negotiations, and is a disappointment to the international community”.
“If the US becomes irrational and issues this list, China will have no choice but to adopt strong countermeasures of the same amount and quality,” the ministry statement said.
Mr Trump said that if China responds to this fresh round of tariffs, then he will move to counter “by pursuing additional tariffs on another 200 billion dollars of goods.”
It was not immediately clear when the new tariffs could be put in place, as the trade office has yet to identify the Chinese goods to be penalised or conduct a legal review. The first round of penalties announced by both nations is set to take effect on July 6.
The move quickly drew praise from former Trump senior adviser Steve Bannon, who said: “President Trump told China and the world tonight that America will not back down when it comes to economic aggression.”
Mr Trump’s comments came hours after the top US diplomat accused China of engaging in “predatory economics 101” and an “unprecedented level of larceny” of intellectual property.
President Donald J. Trump is Confronting China’s Unfair Trade Policies ⬇️ https://t.co/E5adtSt5Zx— The White House (@WhiteHouse) May 29, 2018
Secretary of State Mike Pompeo made the remarks at the Detroit Economic Club as global markets reacted to trade tensions between the US and China. Both nations started putting trade tariffs in motion that are set to take effect July 6.
He said China’s recent claims of “openness and globalisation” are “a joke”. He added that China is a “predatory economic government” that is “long overdue in being tackled,” matters that include IP theft and Chinese steel and aluminium flooding the US market.
“Everyone knows … China is the main perpetrator,” he said. “It’s an unprecedented level of larceny.”
“Just ask yourself: Would China have allowed America to do to it what China has done to America?” he said later. “This is predatory economics 101.”
The Chinese Embassy in Washington did not immediately respond to a request for comment.
Mr Pompeo raised the trade issue directly with China last week, when he met in Beijing with President Xi Jinping and others.
“I reminded him that’s not fair competition,” Mr Pompeo said.
President Donald Trump had announced a 25% tariff on up to 50 billion dollars (£37 billion) in Chinese imports.
China is retaliating by raising import duties on 34 billion dollars (£25 billion) worth of American goods, including soybeans, electric cars and whiskey.
Mr Trump also has slapped tariffs on steel and aluminium imports from Canada, Mexico and European allies.
Wall Street has viewed the escalating trade tensions with wariness, fearful they could strangle the economic growth achieved during Mr Trump’s watch.
Gary Cohn, Mr Trump’s former top economic adviser, said last week that a “tariff battle” could result in price inflation and consumer debt — “historic ingredients for an economic slowdown.”
Mr Pompeo on Monday described US actions as “economic diplomacy”, which, when done right, strengthens national security and international alliances, he added.
“We use American power, economic might and influence as a tool of economic policy,” he said. “We do our best to call out unfair economic behaviors as well.”
In a statement, Mr Trump said he has an “excellent relationship” with Mr Xi, “but the United States will no longer be taken advantage of on trade by China and other countries in the world.”