Trade

Trump Renews His Threat to Impose Tariffs On All Chinese Goods

JM Ashby
Written by JM Ashby

Trump agreed to a "truce" with Chinese President Xi Jinping at the G-20 summit last month, but he reminded the world that his finger is on the big red button during a cabinet meeting at the White House yesterday where he renewed his threat to impose additional tariffs on Chinese goods.

Trump increased the scope of tariffs he's threatening to impose and said he'll impose them on up to $325 billion in goods, up from $300 billion.

From Bloomberg:

President Donald Trump reiterated that he could impose additional tariffs on Chinese imports if he wants, after promising to hold off on more duties in a trade-war truce he reached with China’s Xi Jinping last month.

“We have a long way to go as far as tariffs where China is concerned, if we want. We have another $325 billion we can put a tariff on, if we want,” Trump said. “So, we’re talking to China about a deal, but I wish they didn’t break the deal that we had.” [...]

“If the U.S. imposes new tariffs, this would create a new obstacle for U.S. and China trade negotiations, would make the road to coming to an agreement longer,” Foreign Ministry spokesman Geng Shuang told reporters in Beijing. “China still hopes to resolve U.S.-China trade frictions through consultation and dialogue.”

China cannot "break the deal" that never existed, but I digress.

I still expect Trump will impose these tariffs at some point in the relatively near future and I believe he will see an interest rate cut at the Federal Reserve as a green light to do it. A rate cut will likely send stocks soaring higher and the dubious surge will give the White House the wrong impression that the economy can absorb the impact, but the Fed's rate cut will mean exactly nothing for average Americans.

To say that imposing tariffs on all remaining Chinese goods that aren't already subject to tariffs would "create a new obstacle" is obviously an understatement on the part of the Chinese.

I don't think this will end until Trump is out of office.

  • muselet

    Once again, Donald Trump reverts to bluff, bluster and (attempted) bullying.

    Trump hasn’t realized, even after over two years in office, that other countries’ leaders are less impressed by his antics than are contractors in the construction trades. Acting like a wannabe gangster running a protection racket is unlikely to lead to positive results.

    As I seem never to stop saying, Vladimir Putin sure got his money’s worth.

    –alopecia