Trump calls trade war with China 'a little squabble'

Cornelia Mascio
Mag 15, 2019

On Monday, the United States trade representative announced that a public hearing on the additional tariffs will be held on June 17, though Trump has reportedly not made a final decision on whether to impose the duties. Heavyweight exporters Caterpillar Inc. and Boeing Co. erased around half of Monday's losses that reached over 4 per cent.

The anti-American rhetoric will increase, said Shi, adding: "It is for the domestic Chinese audience - but the Chinese government will not let this kind of logic go too far and damage the prospect of continuing trade talks".

At a briefing on Tuesday, China's foreign ministry spokesman Geng Shuang said: "The two heads of state maintain contact through various means". "We're going to be meeting, as you know, at the G20 in Japan and that'll be, I think, probably a very fruitful meeting".

Among the 3,805 categories of Chinese imports that would be newly subject to a 25 percent tariff are cellphones, computers, and other consumer electronics, the trade representative said, adding that pharmaceuticals, certain medical products, rare-earth and "critical" minerals would be exempt from the new duties.

"We're looking at that very strongly", Trump said.

"He just got back from China".

"Our great Patriot Farmers will be one of the biggest beneficiaries of what is happening now", Trump said on Twitter.

Undaunted by the Chinese retaliation, Trump has threatened to clamp tariffs on the remaining Chinese imports which past year amounted to over United States dollars 539 billion against U.S. exports of USD 120 billion to China.

"Make your product at home in the U.S. and there is no tariff", Trump said.

Farmers, who are a core political constituency for Trump's Republicans heading into the 2020 presidential and congressional elections, are growing increasingly frustrated with the protracted trade talks and the failure to reach an agreement. It said a June 17 hearing would be held before Washington decides how to proceed. "We hope the United States will meet China halfway to address each other's legitimate concerns".

Relations between Washington and Beijing have been tense since US President Donald Trump decided last June to impose 25 percent tariffs on $50 billion worth of Chinese goods in a bid to fix the US-Chinese trade deficit. "We're having a little squabble with China", he said at the White House.

Trump started raising tariffs last July over complaints China steals or pressures foreign companies to hand over technology and unfairly subsidizes businesses Beijing is trying to build into global leaders in robotics and other fields. Ten-year Treasury yields edged higher to 2.42 per cent. Commodities targeted by Chinese tariffs - including soybean and cotton futures - also reversed losses.

Trump has said he is in no rush to finalize a deal with China.

"We are in a much better position now than any deal we could have made", he said.

US President Donald Trump had also ordered the start of a process to impose new duties on another $300bn worth of Chinese items. The explanation or motive behind that move could be the belief that China is content to walk away from the trade talks. In an academic study published in March, economists from the Federal Reserve Bank of New York, Princeton University and Columbia University concluded that "the full incidence of the tariff falls on domestic consumers, with a reduction in US real income of 1.4 billion USA dollars per month by the end of 2018". The country's trade volumes with the Belt and Road countries rose by 9.1 percent in the first four months of 2019, while the figure with the United States is seeing a downward trend.

Laptops, tablets and phones may be affected by tariffs on goods imported from China.

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