Huge Tariffs on Chinese Goods Ready Now
US President Donald Trump has raised the stakes on the proposition that the world will line up behind the US to take on China over trade.
President Trump said Friday that he is willing to slap tariffs on an additional $267-B in Chinese goods, on top of duties of $200-B in imports is already considering. The Trump Administration will act on the $200-B “very soon depending on what happens,” President Trump told reporters on Air Force One.
“I hate to do this, but behind that there is another $267-B ready to go on short notice if I want.”
If the President follows through, the new tariffs and those already in place would more than cover the value of all goods the US buys from China. The US imported $505-B of Chinese products in Y 2017, US government figures show.
Signs have been growing in recent weeks that President Trump wants to focus on China, which he has repeatedly accused of trading unfairly.
The US and EU announced a trade truce in July, promising not to impose new tariffs on each other. Just after that The Trump Administration reached a preliminary deal with Mexico to overhaul the North American Free Trade Agreement (NAFTA), and has been negotiating with Canada for a new 3-nation pact. The President earlier this week signaled a trade agreement with SKorea was close to finished.
White House economic adviser Larry Kudlow said Friday the US wants to build a “coalition of the willing” to take on China that would include the EU, Japan and other allies.
The Chinese must align or find themselves more isolated if they do not come into President Trump’s vision for world trade with the US
The latest numbers from China suggest the nation’s trade surplus with the U.S. rose to a record $31.1-B in August. An analyst at the Bank of China’s Institute of International Finance in Beijing, said exporters are front-loading orders before the next tranche of tariffs takes effect.
Larry Kudlow suggested the President is willing to meet with Chinese President Xi Jinping on trade, possibly as early as this month at the United Nations General Assembly. Mr. Kudlow’s comments indicated the US is looking for a deal with China to end the trade dispute between the world’s largest economies.
President Trump has taken a colder/harsher view to US allies.
Japan will have a “big problem” if it does not conclude a new trade deal with the US.
As for Canada, “People have been saying, ‘I’m too tough on Canada,’” President Trump said. “Look, Canada has been ripping us off for a long time. Now, they’ve got to treat us fairly”, reiterating threats to slap tariffs on auto imports, saying a tax on cars would be the “ruination” of some countries, including Canada.
Expect China to align, their economy is suffering and their benchmark stock index is in Bear market territory.
Have a terrific weekend