Kudlow: Squeeze won't ease; China preps more tariffs

Adjust Comment Print

Trump suggested that his use of tariffs has directly damaged the Chinese economy, something that he said would continue unless they agreed to his demands, which includes allowing more USA exports and investments.

Trump made similar remarks at his two previous rallies in Florida and Pennsylvania earlier in the week when he also jabbed the "brilliant pundits" and the so-called geniuses who never understood that "people that were never happy with anybody until we came along" made up the heart of the economic nationalist movement that got him elected in 2016.

July 16: China filed another complaint to the WTO over Trump's $200 billion tariff plan.

But Chinese officials have suggested in recent weeks that if the United States proceeds with tariffs on a very wide range of Chinese goods, then Beijing may also retaliate against the Chinese-owned operations of big usa companies.

The two countries have been embroiled for months in a trade conflict that has threatened to hurt consumers in both countries.

"Instead of retaliating, China should address the longstanding concerns about its unfair trading practices", Sarah Sanders, White House press secretary, said on Friday.

"Ironically some of the hardest-hit companies are American or producing in the USA, even though the tariffs imposed by the U.S. are meant to help domestic companies", says Ms Baisden.

President Donald Trump in June asked U.S. Trade Representative Robert E. Lighthizer to draft a plan for a 10 percent tariff on $200 billion in Chinese imports.

Any country that doesn't agree to "make or build" its products in the United States will be taxed, the POTUS vowed, proclaiming that his tariffs will inevitably translate into wealth and jobs for the American people, while at the same time reducing debt. "Plants are opening all over the USA, steelworkers are working again, and big dollars are flowing into our Treasury".

President Trump proposes car-mileage rollback; states sue in protest
Currently California has a special waiver under the Clean Air Act to enact stricter rules than those at the federal level. In 2012 , the Obama administration directed automakers to nearly double the average fuel economy of new vehicles by 2025.

March 15: President Trump signed an executive order to impose a 25 percent tariff on steel and a 10 percent tariff on aluminum imports from China and several other countries.

Among US products targeted were a wide range of agricultural and energy products such as beef and LNG.

A few minutes later, he tweeted again, writing, " Tariffs will make our country much richer than it is today. Yet while the Chinese public and private sectors invest in one another based on the principles of the cyclically prosperous market socialist model, the USA is now being forced to subsidise (aka pay) its own farmers whose industry has been partly stagnated during the early stages of the trade war on China.

The measures were decided at a meeting of China's State Council on Friday.

However, there has also been a positive impact for China, as Anna-Marie Baisden, head of autos research at Fitch Solutions, points out.

The Commerce Department said on Friday the trade gap surged 7.3 per cent to $46.3 billion. The deficit had narrowed in previous months as companies rushed out exports to beat the imposition of tariffs. However, there's been little indication thus far that the tariffs will provide such a surplus in funding, and the national debt has continued to rise under the Trump administration. But in the meantime, foreign nations are imposing tariffs on some USA goods such as soybeans and whiskey.

It is hard to predict how the confrontation will end, Kenneth Pomeranz, a professor of Chinese history at the University of Chicago, told the BBC.

"The U.S. gas industry will be much harder hit by this as China imports only a small volume whereas U.S. suppliers see China as a major future market". Americans have consumed more than they produce compared to many other nations for decades, they say.

Comments