President Donald Trump announced Thursday the U.S. will apply a new tariff of 10% on about $300 billion worth of products from China beginning Sept. 1, escalating the two countries’ festering trade dispute.
Trump tweeted amid slow-moving talks with China that negotiations will continue. But he blamed China for not following through on stopping the sale of fentanyl to the United States or purchasing large quantities of farm goods such as soybeans.
Stocks immediately tumbled on the news. The Dow Jones Industrial Average, which had been up nearly 300 points earlier, was down nearly 200 points soon after Trump’s tweets.
The U.S. has already applied tariffs of 25% on $250 billion worth of goods from China. China retaliated with tariffs on $110 billion in American goods, including agricultural products, in a direct shot at Trump supporters in the U.S. farm belt.
…buy agricultural product from the U.S. in large quantities, but did not do so. Additionally, my friend President Xi said that he would stop the sale of Fentanyl to the United States – this never happened, and many Americans continue to die! Trade talks are continuing, and…
— Donald J. Trump (@realDonaldTrump) August 1, 2019
Trump’s threats come after a U.S. delegation returned to Washington from what the White House described as “constructive” trade talks. The negotiations were expected to resume in Washington in September, though exact dates were not announced.
Trump issued the tariff threat in a series of tweets. He also 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!”
…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!
— Donald J. Trump (@realDonaldTrump) August 1, 2019
The world’s two biggest economies are locked in a trade war over U.S. allegations that Beijing uses predatory tactics — including stealing trade secrets and forcing foreign companies to hand over technology — in a drive to overtake American technological dominance.
Talks had broken down in May after the United States accused the Chinese of reneging on earlier commitments.
(AP)
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4 Responses
Eizeh Hu Chacham, Haro’eh Es Ha’noled. Donald Trump is 100% on the mark here! If we dont get a grip on the exploitation of the american economy by some of the rich in our country who want to take advantage of every situation they can in making deals with foreign companies, our children will suffer. We need to buy american and hire american or soon all our money will be in china.
I am not sure I agree with these tariffs. All they are doing is making it more expensive for Americans to buy things. The reason Americans buy from China is that their products are cheaper. We need to address the reasons that they are so much cheaper such as busting up unions for example that cause us to have to pay a worker $45 per hour to build a car whereas this does not exist in china where the economics dictate the prices. There are plenty of laws in place to protect employees these days. Unions are no longer needed.
As far as the major problems in the world are concerned, it is China , the head of the snake, that should be held accountable. It is China that supported and helped turn Iran into a nuclear state. Chinese scientists over the year travelled to and from from Iran. Germany also helped with its sale of uranium and scientist support. If we get the head of the snake, China, we will have helped combat terrorism around the world.Get China, then Iran will weaken ,along with another Chinese creation, North Korea. They are all in the mess to cause great conflict in the Middle East.
To Hateshek: There are many anti-Semites who agree with you, and very few economists.