Trump Ratchets Up Trade War with China with Announcement of 10% Tariff on $300B of Chinese Goods; Says Until There’s a Trade Deal ‘We’ll be Taxing Them’

  • President Trump ratcheted up the ongoing trade war with China on Thursday by announcing a 10% tariff will be imposed on the remaining $300 billion worth of Chinese goods that haven’t already been subjected to tariffs on September 1.
  • As soon as the surprise announcement was made via Twitter, stock prices began to drop. The Dow was up almost 300 points earlier Thursday, but was down nearly 200 points after the tariff announcement and ended up closing down 280 points.
  • The day before the announcement, the White House announced that China confirmed it would purchase more U.S. farm products.
  • The Thursday announcement “came just as U.S. and Chinese negotiators were ending a 12th round of trade talks in Shanghai, which the White House called constructive.”
  • Over the past few months, Trump hit $250 billion of Chinese imports with 25% tariffs, prompting China to impose tariffs on $110 billion worth of U.S. products.
  • According to experts, “U.S. consumers will likely feel the pain if Trump proceeds with the new tariffs; the new tariffs will hit a vast range of consumer products from cellphones to silk scarves.”
  • An economist tweeted: “Attention all Target & Wal-Mart shoppers … the price on the goods you buy ahead of the holidays are going up due to trade policy.”
  • Past tariffs were “designed to minimize the impact on ordinary Americans by focusing on industrial goods.”
  • Though Trump previously said he was willing to tax the additional Chinese goods, he stopped his rhetoric in June after meeting with Chinese President Xi Jinping.
  • Despite the additional tariffs, Trump tweeted, “we look forward to continuing our positive dialogue with China on a comprehensive Trade Deal, and feel that the future between our two countries will be a very bright one!”
  • Defending the additional tariffs, Trump told reporters that China hadn’t followed through on its promise to stop selling fentanyl to the U.S. and was yet to purchase large amounts of farm goods. Trump also accused President Xi of “not moving fast enough.”
  • Trump also said: “Until such time as there’s a deal, we’ll be taxing them.”

Reference Links

  • AP: Trump says he’ll put 10% tariffs on remaining China imports READ
  • CBS: Stocks and oil prices plunge moments after Trump threatens China with new 10% tariff READ
  • New York Post: Chuck Schumer backs Trump on new China tariffs READ
  • BBC: Trump to impose more tariffs on Chinese goods READ

1 Comment

  1. Tariffs are only one side of the coin, the trade imbalance is the other. Why nobody bothers to explain, in detail, how trade imbalances raise the cost of living is beyond me.

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