Trump claims tariffs are 'working big time'

Aug 06, 2018, 04:44
Trump claims tariffs are 'working big time'

Late on Friday, China's finance ministry unveiled new sets of additional tariffs on 5,207 goods imported from the United States, with the extra levies ranging from five to 25 percent on a total value of goods less than half of that proposed by U.S. President Donald Trump's administration. Tariffs of 2,3 percent hardly represent a tariff war, let alone a trade war.

"Because of Tariffs we will be able to start paying down large amounts of the $21 Trillion in debt that has been accumulated, much by the Obama Administration, while at the same time reducing taxes for our people".

China's new threat targeting a smaller amount of US goods reflects the fact that Beijing is running out of products for retaliation due to its lopsided trade balance with the United States. Our market is stronger than ever, and will go up dramatically when these disgusting Trade Deals are successfully renegotiated. US Trade Representative Robert Lighthizer last week called trade tensions a "chronic problem" that would likely take years to resolve.

Signalling the nation's readiness to respond to higher tariffs threatened by Donald Trump on $200bn of Chinese imports, officials in Beijing said countermeasures were ready and waiting for the next move from Washington. The Trump administration is weighing an additional round of tariffs on $200 billion of Chinese goods.

The essential objective foundations of the trade war are now emerging more clearly into the open. Research later conducted on those tariffs found they negatively impacted employment and the USA economy.

The result is that both China and the U.S. are now using government funds to stimulate areas of the economy. China instead is threatening roughly two-fifths of its USA purchases after Trump threatened two-fifths of China's much larger exports to the United States, said Tu Xinquan, executive dean of the China Institute for World Trade Organization Studies at the University of International Business and Economics in Beijing. While census data shows that the...

The United States alleges that China steals U.S. corporate secrets and wants it to stop doing so, and is also seeking to get Beijing to abandon plans to boost its high-tech industries at America's expense.

Pompeo added that he had discussed trade issues with China's State Councillor Wang Yi on Friday.

It is of course always possible that tariffs or the threat of tariffs will lead other countries to drop their own trade barriers or reduce their use of abusive practices such as the theft of intellectual property. That means it will buy more soybeans from Brazil, and so Europe will have to buy more from us.

Kudlow has said while talks have stalled in recent days there had been some communication at the highest level between the USA and China. "So we'll have a united front against China". But there are major obstacles in the way of further negotiations.

"For the goods that have less impact on China's industrial production and consumption, the tariff rates are much higher, but that can effectively hit back on the United States when it is necessary to levy", he said. Yet while the Chinese public and private sectors invest in one another based on the principles of the cyclically prosperous market socialist model, the United States is now being forced to subsidise (aka pay) its own farmers whose industry has been partly stagnated during the early stages of the trade war on China.

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