Trump Tweets Order for U.S. Companies to Find ‘An Alternative To China’; Says U.S. ‘Better Off’ Without China After Latest Announcement From China That It Will Impose Additional Tariffs on $75B of U.S. Goods

  • After China announced on Friday that it would impose 5% and 10 % tariffs on approximately $75 billion of U.S. goods, President Trump retaliated and tweeted that he was ordering U.S. companies to look into “an alternative to China” to do business.
  • Trump tweeted: “Our Country has lost, stupidly, Trillions of Dollars with China over many years. They have stolen our Intellectual Property at a rate of Hundreds of Billions of Dollars a year, & they want to continue. I won’t let that happen! We don’t need China and, frankly, would be far….”
  • Trump continued: “….better off without them. The vast amounts of money made and stolen by China from the United States, year after year, for decades, will and must STOP. Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing..”
  • “….your companies HOME and making your products in the USA. I will be responding to China’s Tariffs this afternoon. This is a GREAT opportunity for the United States. Also, I am ordering all carriers, including Fed Ex, Amazon, UPS and the Post Office, to SEARCH FOR & REFUSE,….,” Trump continued.
  • Trump concluded: “….all deliveries of Fentanyl from China (or anywhere else!). Fentanyl kills 100,000 Americans a year. President Xi said this would stop – it didn’t. Our Economy, because of our gains in the last 2 1/2 years, is MUCH larger than that of China. We will keep it that way!”
  • The White House didn’t respond immediately “when asked if the announcement, delivered in a four-part Twitter thread Friday morning, constituted an official order from the president.”
  • It is not “clear how, or under what authority, the president could implement these declared orders, or whether he had already done so.”
  • After Trump’s tweets, stocks plunged to session lows with the Dow falling more than 435 points.
  • Following the tweets, UPS released a statement saying it “follows all applicable laws and administrative orders of the governments in the countries where we do business. We work closely with regulatory authorities to monitor for prohibited substances.”
  • FedEx also released a statement:  “FedEx already has extensive security measures in place to prevent the use of our networks for illegal purposes. We follow the laws and regulations everywhere we do business and have a long history of close cooperation with authorities.”
  • According to reports, Trump is set to meet with his trade team on Friday before leaving to attend the G-7 summit later Friday night.

Reference Links

  • CNBC: Trump says he’s ordering American companies to immediately start looking for an alternative to China READ
  • BBC: Trump vows retaliation as China escalates trade war READ
  • The Week: Trump tweets U.S. companies ‘are hereby ordered’ to look into alternatives to China READ
  • New York Post: Stocks drop after Trump ‘orders’ US companies to leave China READ

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