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Trump defends tariff strategy; China says it is 'not afraid' of trade war

17 Comments

U.S. President Donald Trump on Tuesday defended the use of tariffs as part of his trade strategy while China vowed a tough response if the United States insists on escalating trade tensions amid ongoing negotiations.

The United States kicked off a tariff battle with China in 2018, seeking sweeping structural changes from Beijing. But tensions between Washington and Beijing rose sharply in May after the Trump administration accused China of reneging on promises to make structural economic changes during months of trade talks.

"Tariffs are a great negotiating tool," Trump tweeted, one day after saying he was ready to impose another round of punitive tariffs on China.

On Monday, the Republican president said he would raise tariffs on Chinese imports further if he cannot make progress in trade talks with Chinese President Xi Jinping at the G20 summit later this month.

Trump has repeatedly said he is getting ready to meet Xi at the summit in Osaka, Japan, at the end of June, but China has not confirmed it.

Chinese Foreign Ministry spokesman Geng Shuang again would not be drawn into confirming a Xi-Trump meeting at G20, saying information would be released once it was available to the foreign ministry.

"China does not want to fight a trade war, but we are not afraid of fighting a trade war," he said, adding China's door was open to talks based on equality.

"If the United States only wants to escalate trade frictions, we will resolutely respond and fight to the end."

Last week, Trump said he would decide after G20, the meeting of the leaders of the world's largest economies, whether to carry out a threat to impose tariffs on an additional $300 billion in Chinese goods.

Trump is buoyed by his self-declared victory following a days-long battle with Mexico after he threatened to impose tariffs unless Mexican authorities did more to stem the migrant flow across the U.S.-Mexico border.

The dual fights have pitted the Trump administration against its top two trading partners.

Washington is pressing Beijing to address concerns over forced technology transfers and theft of U.S. trade secrets. It also wants curbs on subsidies for Chinese state-owned enterprises and better access for U.S. firms to Chinese markets.

On May 10, Trump raised tariffs on $200 billion of Chinese goods to 25% and took steps to levy duties on the additional$300 billion in Chinese imports. Beijing retaliated with tariff hikes on a revised list of $60 billion in U.S. goods.

U.S. Commerce Secretary Wilbur Ross on Tuesday downplayed the likelihood of resolving the dispute at the G20 summit, saying it would not be "a place where anyone makes a definitive deal."

"At the G20, at most it will be ... some sort of agreement on a path forward, but certainly it's not going to be a definite agreement," Ross told CNBC.

The White House's top economic adviser Larry Kudlow echoed that sentiment in an interview with CNBC, saying he was hopeful the two presidents would meet at the G20 summit and be able to salvage the discussions.

The two sides were "about 90 percent home" on a "great deal" when the talks fell apart a month ago, Kudlow said.

"We'd like to go back to where we were a month ago, where we have a very good basis," Kudlow said.

Terry Branstad, the U.S. ambassador to China, was scheduled to meet with U.S. Vice President Mike Pence in Washington on Tuesday amid the ongoing negotiations.

The U.S. government has also angered China by putting Huawei Technologies Co Ltd, the world's biggest telecoms equipment maker, on a blacklist that effectively bans U.S. companies from doing business with the Chinese firm.

Investors worry China will retaliate by putting U.S. companies on a blacklist or banning exports to the United States of rare earth metals, which are used in products such as memory chips, rechargeable batteries and cellphones.

© (c) Copyright Thomson Reuters 2019.

©2019 GPlusMedia Inc.

17 Comments

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It'd be hilarious if China started dumping its US government bonds just before the election next year. Watch Donny go into meltdown as the economy slides into chaos because of his imbecility.

6 ( +7 / -1 )

If I had said China should unleash its hackers to attack Donny and spread lies about him, you would have a valid point. Unfortunately for you, I mere encouraged a soveirgn country to sell its assets at an opportune time.

But Hillary! But Uranium One. But, but, but . . .

2 ( +3 / -1 )

It’s sad that you cant even beat the supposed worst President in history. Have to enlist a hostile foreign government to interfere in our elections and crash our economy causing ruin to millions of people and businesses. Liberals seriously seem like some hateful people. Can’t you just get a decent candidate and just win instead?

Can't you argue with real people instead of the ones you make up?

3 ( +4 / -1 )

On Monday, the Republican president said he would raise tariffs on Chinese imports further if he cannot make progress in trade talks with Chinese President Xi Jinping at the G20 summit later this month.

And this is what we get - a two year old who has no experience or understanding of China except what he hears from idiots like Wilbur Ross or John Bolton. He has no understanding of what the Communist party is, how it remains in power, how it can never be seen as bowing to western pressure, and how it will do anything to remain in power.

If he understood these things, then he could craft a successful strategy to negotiate with China. But instead he throws two year old tantrums, expecting the Chinese to capitulate, when for over 60 years they have been telling the Chinese people that the west has "humiliated" them and that only the Party can protect them.

He's pushed China into a a closer relationship with Russia, and ensured China will be of no help with North Korea.

It's foreign policy by "The Apprentice"....with the same results...

Time to say "You're fired"...

5 ( +6 / -1 )

It'd be hilarious if China started dumping its US government bonds just before the election next year. Watch Donny go into meltdown as the economy slides into chaos because of his imbecility.

At this rate, I don’t think China is that suicidal.

-3 ( +2 / -5 )

Its been two and a half years. Has Trump made any impact on this besides costing consumers money?

4 ( +6 / -2 )

China says it is 'not afraid' of trade war

Oh yes they are. They think they can wait until 2020 or even 2024. But assuming Trump is re-elected and certainly if the next president continues Trump's China policy after 2024 they will give up.

-5 ( +1 / -6 )

Its been two and a half years. Has Trump made any impact on this besides costing consumers money?

You have to start somewhere, the Democrats would never even think of taking China on, Schumer supports Trump, that should say a lot to the Democrats that Trump is on the right track.

-2 ( +1 / -3 )

Well, well, the Donnie .....

Once again he is mixing up (or not understanding) easy calculation/numbers.

According to him the Chinese economy lost $15 trillion since he became the "wannabe" POTUS.

Now, 15 trillion, that's the whole Chinese economy .... which means, China doesn't exist any more.

The knowledge of a kindergarten child, get some education, buddy!

https://www.yahoo.com/news/cnbc-trump-says-wiped-150-171446823.html

3 ( +3 / -0 )

You have to start somewhere

I just haven't seen any results at all.

4 ( +4 / -0 )

You have to start somewhere

I just haven't seen any results at all.

Umm...

https://www.bloomberg.com/news/articles/2019-05-15/china-s-economy-lost-momentum-even-ahead-of-trump-s-new-tariffs

There is going to be pain on both sides. It's a trade WAR. Trump is doing what's good for the greater good, for the long term.

-5 ( +0 / -5 )

I just haven't seen any results at all.

You need to be patient.

-4 ( +0 / -4 )

You weren't patient with Obama

He had eight years. EIGHT YEARS! Zip! Zero! Nada! To be fair so did Bush and Clinton and the first Bush.

-4 ( +0 / -4 )

He had eight years. EIGHT YEARS! Zip! Zero! Nada! To be fair so did Bush and Clinton and the first Bush.

You weren't patient with Obama at this point in his presidency.

3 ( +4 / -1 )

And let's add, you people are silly. It's always been 'oh, NK is so easy to fix. The other presidents just didn't do [X]'.

Now you're starting to figure out reality, that there isn't a simple solution that isn't being done because no one has the [$#%] to do it. You're finally faced with the reality that if a moron with nuclear weapons wants to dig in his heels, there isn't anything that can be done about that, other than attacking them... and we're back to the nuclear weapons.

And yet you STILL are trying to disparage other presidents, even though the moron in chief has clearly, by YOUR definitions, been a failure at it. He's in the exact same position as other presidents, playing the exact same game, with the difference being that Trump gave up numerous concessions, and got nothing in return. Zip. Zilch. Nada.

Oh wait, he got some bro pics with Kim. I guess he got something.

Ignoring the team moron and team us dynamic, the fact of the matter is that regardless of the political persuasion (or lack thereof) of the president of the united states, the NK problem is going nowhere anytime soon. This is a non-partisan issue. You think Kim cares which party the president is, beyond using it as a consideration as to how he molds his actions?

Give it up boys. Trump blustered a bunch, conceded a bunch, and ended up in the same position as other presidents. Enough of the trying to pretend like he did anything special, enough of trying to pretend his concessions led to anything other than failure, and enough of trying to pretend like he has had any more success than any other president.

But let's not stop pointing out how he gave up concessions in return for a handshake and a photo-op with Kim!

2 ( +2 / -0 )

You weren't patient with Obama at this point in his presidency

Well, he never engaged China about their unfair trade practices or called them on stealing our intellectual property or manipulating their currency, he didn’t do anything on Crimea. We were all patient, the guy was just slower than a bucket of fresh molasses on a cold winters day.

-2 ( +0 / -2 )

America had always being a big bully. Get out of Asia, America.

0 ( +0 / -0 )

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