Trade war: US President Trump threatens additional $200bn in tariffs on China
US President Donald Trump said after the legal process is complete, these tariffs worth USD200 billion will go into effect if China refuses to change its practices.
US President Donald Trump has threatened to impose tariffs on an additional USD 200 billion worth of Chinese goods unless Beijing ceases its "unfair practices", escalating a trade war between the world's two largest economies.
The move followed tariffs applied last week on USD 50 billion in Chinese imports to the US. China responded by saying it would hit 659 US products worth USD 50 billion.
Trump has been insisting that China has been unfairly benefitting from a trade imbalance with the US for years.
In a statement yesterday, Trump said that he had ordered US Trade Representative (USTR) Robert Lighthizer to identify a second tranche of goods imported from China for tariffs of 10 per cent.
Trump said after the legal process is complete, these tariffs worth USD200 billion will go into effect if China refuses to change its practices.
"If China increases its tariffs yet again, we will meet that action by pursuing additional tariffs on another USD200 billion of goods. The trade relationship between the United States and China must be much more equitable," Trump said.
"However, and unfortunately, China has determined that it will raise tariffs on USD50 billion worth of United States exports. China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology," Trump said.
"Rather than altering those practices, it is now threatening United States companies, workers, and farmers who have done nothing wrong," he said.
He said China's latest action clearly indicated its determination to keep the US at a permanent and unfair disadvantage, which is reflected in massive USD376 billion trade imbalance in goods.
"This is unacceptable...Further action must be taken to encourage China to change its unfair practices, open its market to United States goods, and accept a more balanced trade relationship with the United States," he said.
US Trade Representative Robert Lighthizer welcomed the decision.
"It is very unfortunate that instead of eliminating these unfair trading practices China said that it intends to impose unjustified tariffs targeting US workers, farmers, ranchers, and businesses. At the President's direction, USTR is preparing the proposed tariffs to offset China's action," Lighthizer said.
China's Commerce Ministry responded swiftly to Trump's latest threat, warning that if the Trump administration followed through, China would "have to adopt comprehensive measures combining quantity and quality to make a strong countermeasure."
The US "practice of extreme pressure and blackmail departed from the consensus reached by both sides during multiple negotiations and has also greatly disappointed international society," it said.
WATCH THIS ZEE BUSINESS VIDEO HERE
Trump's latest comments came hours after US Secretary of State Mike Pompeo accused China of engaging in 'predatory economics'.
"Chinese leaders over these past few weeks have been claiming openness and globalisation, but it's a joke. Let's be clear: It's the most predatory economic government that operates against the rest of the world today. This is a problem that is long overdue in being tackled," Pompeo said.
"Whether that's threatening our technology leadership through intellectual property theft or forced technology transfer, we are hard at ensuring that we protect American property," he said.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
EPFO Pension Schemes: Early pension, retirement pension, nominee pension and 4 other pension schemes that every private sector employee should know
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
11:17 AM IST