China to reduce auto tariffs after Trump criticism
- Author: Zachary Reyes Apr 10, 2018,
Apr 10, 2018, 18:30
Karst added: "This latest trade action [by China], if it is on soybeans, if it does come about, it will have a devastating impact on United States soy farmers, and by extension all USA farmers". His remarks seemed created to offer some policy initiatives, if not concessions, while drawing a contrast with President Trump's "America First" agenda and portraying China as a steady global partner committed to the worldwide trade order. Too much conventional analysis goes wrong in attributing this to trade agreements and in failing to recognize offsetting job gains from exports. "If the United States announces an additional $100 billion list of tariffs, China has already fully prepared, and will not hesitate to immediately make a fierce counter strike". Since December 2016, Beijing also has charged an additional 10 percent on "super-luxury" vehicles priced above 1.3 million yuan ($200,000).
"President Xi and I will always be friends", Trump tweeted on Sunday. Trump has called on Beijing to ease trade barriers "because it is the right thing to do".
The president's announcement came weeks after his decision to tax imports of steel and aluminium, followed by planned levies on $50 billion worth of goods from China over what Washington says is theft of intellectual property and technology.
"I think it's so clearly in the interest of both countries that we have a constructive trading relationship and that we have substantive talks to redress these issues".
Trump's moves, part of his protectionist America First agenda, have rattled world markets, fearing a trade war between the world's top two economies could reverse the tentative global recovery. Beijing, on the other hand, vowed strong retaliation and blamed the US for wrecking global trade order.
Trump remained defiant and argued the pain of the dispute will pay off in the end, while China said that his administration would only "shoot itself in the foot" if it didn't back down from the "extremely wrong" threats. Trump said in his tweet.
"Any attempt to stop imports into China would only hurt Chinese industry", she told The New Daily. This is a small amount compared to the $60 billion in tariffs imposed by Trump on Chinese products, but it could be the beginning of retaliation by the Chinese.
As seen in the chart below from Westpac Bank, China's trade surplus with the United States has ballooned over the past decade as exports to the U.S. grew substantially faster than imports heading in the other direction.
Despite Trump's threats for more sanctions, he has insisted the U.S.is not engaged in a trade dispute with the Asian nation. "President Xi was trying to strike a balance today", said Myron Brilliant, executive vice president of the U.S. Chamber of Commerce. But China's initial reaction was to fight back rather than flinch.
"Our farmers are great patriots". President Donald Trump expressed optimism the United States will be able to reach a deal with China that diffuses trade tensions between the world's two biggest economies. "If the USA says that it will pay any price, it must be firmly attacked", China's official Xinhua news agency said on Saturday. "They understand they're doing this for the country", he told reporters at a cabinet meeting. "Every day of the week China comes into our homes, our business and our government agencies".
The rising economic tensions pose a test to what has become Trump's frequent dual-track foreign policy strategy: to establish close personal ties with another head of state even as his administration takes a harder line.
Mr Geng indicated, however, that China was not budging for now.
This amount is considered to represent huge leverage for the Chinese, which they may be tempted to use if the trade feud escalates further.