China has responded immediately to Donald Trump’s escalation of a trade war, announcing tariffs on another $60 billion of US goods.
Less than two months before Congressional elections, Trump stepped up his high-profile protectionism on Monday. He announced tariffs on $200 billion of Chinese goods, adding to his initial $50 billion of duties announced earlier this year. He said he was prepared to extend the levies to all Chinese imports, threatening another $267 billion “if China takes retaliatory action against our farmers or other industries”.
But Beijing was not deterred. Yesterday it set out its own measures raising the total of US products affected to $110 billion — more than 80% of its import of $130 billion in 2017.
The latest US tariffs will be introduced in two stages: 10% on Monday and 25% from January 1, covering imports from food seasonings and baseball gloves to network routers and industrial machinery parts.
China is matching that schedule with an initial 5% levy rising to 10% on more than 5,000 US goods, such as meat, nuts, alcoholic drinks, chemicals, clothes, machinery, furniture, and auto parts.
US economists have warned of a 0.2% drop in US growth, with a further decline from the Chinese retaliation. Manufacturer, consumer groups, and many American businesses have objected.
But Trump continued his campaign on Tuesday via Twitter, threatening another escalation:
China has openly stated that they are actively trying to impact and change our election by attacking our farmers, ranchers and industrial workers because of their loyalty to me. What China does not understand is that these people are great patriots and fully understand that…..
— Donald J. Trump (@realDonaldTrump) September 18, 2018
…..China has been taking advantage of the United States on Trade for many years. They also know that I am the one that knows how to stop it. There will be great and fast economic retaliation against China if our farmers, ranchers and/or industrial workers are targeted!
— Donald J. Trump (@realDonaldTrump) September 18, 2018
Chinese Foreign Ministry spokesman Geng Shuang said Trump’s latest step “has brought uncertainty” to planned negotiations with the US, while stopping short of any indication that Beijing will withdraw:
The Chinese side has repeatedly emphasized that the only correct way to solve the trade dispute between China and the United States is through talk and consultation on the basis of equity, integrity and mutual respect
But what the US side has done doesn’t show sincerity or goodwill.
