“It’s time to take a stand on China,” President Trump said in an interview late Thursday with Fox News. “We have no choice. It’s been a long time. They’re hurting us.”
President Trump’s biggest strike yet in a growing trade fight between the world’s biggest economies will see a 10 percent duty applied to $200_ of Chinese imports, which could rise to 25% in January. He’s threatened duties on a further $267-B of made-in-China goods, which would hit nearly all other consumer products including mobile phones, shoes and clothes.
The latest round of duties comes on top of a 25% tariff already imposed on about $50-B in Chinese goods, which spurred counter-tariffs from Beijing. China plans to retaliate on the US’s $200-B tariff round by slapping levies on $60-B of American goods.
Officials in Beijing worry that President Trump’s latest tariff s mark a steady march toward a long-term competition that could hobble China’s rise.
President Trump’s latest comments and the ascendancy of China hawks within his administration will only compound such concerns.
Adding to frictions, China on Friday demanded the US withdraw penalties it placed on a defense agency and its director for purchasing Russian weapons in violation of American sanctions or “bear the consequences.”
The Trump Administration has not put a process in place for companies to get exemptions from the most recent tariffs it’s imposing, unlike earlier rounds of the duties.
The US has justified its decision by saying that it’s giving companies more than three months to transition their supply chains away from China before the tariff rate increases, according to one of the people.
A spokeswoman with the US Trade Representative’s office said there was no announcement at this time regarding an exclusion process for tariffs on the $200-B of Chinese goods.
The decision is likely to put additional pressure on American companies that say President Trump’s trade dispute with Beijing is increasing uncertainty and boosting costs. Industry groups including the National Retail Federation (NRF) have been pushing the administration to spare firms and consumers from import tariffs.
The Trump Administration argues that tariffs give the country leverage as it pushes China to reduce trade barriers and protect American firms from unfair practices, such as theft of IP (intellectual property).
Have a terrific weekend
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