Trump defends China tariffs and claims 'great patriot farmers' will reap benefits

Cornelia Mascio
Mag 16, 2019

He responded with a tariff hike on $200 billion of goods and a threat to put to put penalties on $325 billion of other items, essentially promising blanket tariffs on Chinese products of 25 percent.

The federation cited an estimate by the Tariffs Hurt the Heartland campaign as saying that imposing tariffs of 25 percent on all remaining imports from China, combined with the impact of retaliation, would jeopardize more than 2 million American jobs, cost the average U.S. family 2,300 dollars each year and reduce the value of U.S. GDP by 1 percent. "We expect fiscal support to be stepped up, mostly on the infrastructure".

Trump is trying to smoke the Chinese out after a deal he says was almost finished fell apart last week.

Trump has said he would meet with Chinese President Xi Jinping during a G20 meeting at the end of June.

"China does not want a trade war but we are not afraid of it".

And retail sales fell 0.2 percent - the mirror image of the 0.2 percent gain economists had instead predicted - which like manufacturing was impacted by weak auto sales. Trump also said the U.S.is in a "great position", noting that "our economy has been very powerful; theirs has not been". On Wall Street, technology stocks led the rebound but major indexes finished below their session highs.

"It's a nice bounce-back certainly after yesterday for sure", said Gary Bradshaw, portfolio manager of Hodges Capital Management in Dallas. "I think that's got investors buying the dip".

The Dow rose 0.8% and the Nasdaq composite index jumped 1.1%.

Earlier on Tuesday, Chinese Foreign Ministry spokesman Geng Shuang told a daily news briefing that it was his understanding that China and the United States had agreed to continue "pursuing relevant discussions".

USA agricultural products have been targeted by China's retaliatory tariffs, and American farmers, a key political constituency for Trump, are increasingly frustrated with the failure of the two sides to find a solution to the dispute.

"We've been understanding during this negotiation process, but we can not withstand another year in which our most important foreign market continues to slip away", said John Heisdorffer, ASA Chairman and soy grower from Keota, Iowa.

Several U.S. groups representing a variety of industries have denounced Washington's recent move to increase tariffs on Chinese imports. "China has been running an economic war against the industrial democracies for 20 years", Trump's former chief strategist Steve Bannon said in a CNBC interview, maintaining that the face-off with Beijing "cuts to the core of what the United States is going to be in the future", and Trump will settle for nothing short of victory. The USTR noted it excludes pharmaceuticals and rare earths minerals used in electronics and batteries. "Many companies are leaving China so that they will be more competitive for U.S. buyers... we are the "piggy bank" that everyone wants to raid and take advantage of".

The prospect of the global economy being derailed by the United States and China sliding into a fiercer, more protracted dispute has rattled investors and sparked a sharp selloff on equities markets in the past week.

However, the onshore yuan weakened 0.1% to its lowest level since December 27, 2018, trading at 6.8874 per dollar, after China's Foreign Ministry said it hoped the United States does not "underestimate China's determination and will to safeguard its interests". The US economy, while growing at a healthy clip, could come under pressure.

The piece claimed, 'Particularly in today's world, the Chinese market is huge and very close to the us market in size, and the trend is [we] will overtake the U.S'.

Geng put the blame on Washington for going back on its word in some previous rounds of talks, including last May, when the two sides reached an agreement in Washington but then the United States backed out a few days later.

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