President Donald Trump gestures as he signs a “Space Policy Directive”
during a meeting of the National Space Council in the East Room of the
White House, Monday, June 18, 2018, in Washington, as Vice President
Mike Pence watches. AP Photo/Susan Walsh.
during a meeting of the National Space Council in the East Room of the
White House, Monday, June 18, 2018, in Washington, as Vice President
Mike Pence watches. AP Photo/Susan Walsh.
WASHINGTON
(AP) — President Donald Trump directed the U.S. Trade Representative
to prepare new tariffs on $200 billion in Chinese imports on Monday as
the two nations moved closer to a potential trade war.
(AP) — President Donald Trump directed the U.S. Trade Representative
to prepare new tariffs on $200 billion in Chinese imports on Monday as
the two nations moved closer to a potential trade war.
The
tariffs, which Trump wants set at a 10 percent rate, would be the
latest round of punitive measures in an escalating dispute over the
large trade imbalance between the two countries. Trump recently ordered
tariffs on $50 billion in Chinese goods in retaliation for intellectual
property theft. The tariffs were quickly matched by China on U.S.
exports, a move that drew the president’s ire.
tariffs, which Trump wants set at a 10 percent rate, would be the
latest round of punitive measures in an escalating dispute over the
large trade imbalance between the two countries. Trump recently ordered
tariffs on $50 billion in Chinese goods in retaliation for intellectual
property theft. The tariffs were quickly matched by China on U.S.
exports, a move that drew the president’s ire.
“China
apparently has no intention of changing its unfair practices related to
the acquisition of American intellectual property and technology,”
Trump said in a statement Monday announcing the new action. “Rather than
altering those practices, it is now threatening United States
companies, workers, and farmers who have done nothing wrong.”
apparently has no intention of changing its unfair practices related to
the acquisition of American intellectual property and technology,”
Trump said in a statement Monday announcing the new action. “Rather than
altering those practices, it is now threatening United States
companies, workers, and farmers who have done nothing wrong.”
Trump
added: “These tariffs will go into effect if China refuses to change
its practices, and also if it insists on going forward with the new
tariffs that it has recently announced.”
added: “These tariffs will go into effect if China refuses to change
its practices, and also if it insists on going forward with the new
tariffs that it has recently announced.”
China’s
Commerce Ministry on Tuesday criticized the latest threat of tariffs,
saying it was an “act of extreme pressure and blackmail that deviates
from the consensus reached by both parties after many negotiations, and
is a disappointment to the international community.”
Commerce Ministry on Tuesday criticized the latest threat of tariffs,
saying it was an “act of extreme pressure and blackmail that deviates
from the consensus reached by both parties after many negotiations, and
is a disappointment to the international community.”
“If
the U.S. becomes irrational and issues this list, China will have no
choice but to adopt strong countermeasures of the same amount and
quality,” the ministry statement said.
the U.S. becomes irrational and issues this list, China will have no
choice but to adopt strong countermeasures of the same amount and
quality,” the ministry statement said.
Trump
said that if China responds to this fresh round of tariffs, then he
will move to counter “by pursuing additional tariffs on another $200
billion of goods.”
said that if China responds to this fresh round of tariffs, then he
will move to counter “by pursuing additional tariffs on another $200
billion of goods.”
It
wasn’t immediately clear when the new tariffs could be put in place, as
the trade office has yet to identify the Chinese goods to be penalized
or conduct a legal review. The first round of penalties announced by
both nations is set to take effect July 6.
wasn’t immediately clear when the new tariffs could be put in place, as
the trade office has yet to identify the Chinese goods to be penalized
or conduct a legal review. The first round of penalties announced by
both nations is set to take effect July 6.
The
intellectual property sanctions were the latest in a spate of
protectionist measures unveiled by Trump in recent months that included
tariffs on steel and aluminum imports to the U.S. and a tough rhetoric
on trade negotiations from North America to Asia.
intellectual property sanctions were the latest in a spate of
protectionist measures unveiled by Trump in recent months that included
tariffs on steel and aluminum imports to the U.S. and a tough rhetoric
on trade negotiations from North America to Asia.
The
escalation in the dispute with China may also serve as a warning to
other trading partners with whom Trump has been feuding, including
Canada and the European Union.
escalation in the dispute with China may also serve as a warning to
other trading partners with whom Trump has been feuding, including
Canada and the European Union.
The
move quickly drew praise from former Trump senior adviser Steve Bannon,
who told The Associated Press: “President Trump told China and the
world tonight that America will not back down when it comes to economic
aggression.”
move quickly drew praise from former Trump senior adviser Steve Bannon,
who told The Associated Press: “President Trump told China and the
world tonight that America will not back down when it comes to economic
aggression.”
But
Wall Street has viewed the escalating trade tensions with wariness,
fearful they could strangle the economic growth achieved during Trump’s
watch. Gary Cohn, Trump’s former top economic adviser, said last week
that a “tariff battle” could result in price inflation and consumer debt
— “historic ingredients for an economic slowdown.”
Wall Street has viewed the escalating trade tensions with wariness,
fearful they could strangle the economic growth achieved during Trump’s
watch. Gary Cohn, Trump’s former top economic adviser, said last week
that a “tariff battle” could result in price inflation and consumer debt
— “historic ingredients for an economic slowdown.”
Trump’s
comments came hours after the top U.S. diplomat accused China of
engaging in “predatory economics 101” and an “unprecedented level of
larceny” of intellectual property.
comments came hours after the top U.S. diplomat accused China of
engaging in “predatory economics 101” and an “unprecedented level of
larceny” of intellectual property.
Secretary
of State Mike Pompeo made the remarks at the Detroit Economic Club as
global markets reacted to trade tensions between the U.S. and China.
of State Mike Pompeo made the remarks at the Detroit Economic Club as
global markets reacted to trade tensions between the U.S. and China.
He
said China’s recent claims of “openness and globalization” are “a
joke.” He added that China is a “predatory economic government” that is
“long overdue in being tackled,” matters that include IP theft and
Chinese steel and aluminum flooding the U.S. market.
said China’s recent claims of “openness and globalization” are “a
joke.” He added that China is a “predatory economic government” that is
“long overdue in being tackled,” matters that include IP theft and
Chinese steel and aluminum flooding the U.S. market.
“Everyone knows … China is the main perpetrator,” he said. “It’s an unprecedented level of larceny.”
“Just
ask yourself: Would China have allowed America to do to it what China
has done to America?” he said later. “This is predatory economics 101.”
ask yourself: Would China have allowed America to do to it what China
has done to America?” he said later. “This is predatory economics 101.”
The Chinese Embassy in Washington did not respond to a request for comment.
Pompeo raised the trade issue directly with China last week, when he met in Beijing with President Xi Jinping and others.
“I reminded him that’s not fair competition,” Pompeo said.
Trump
had announced a 25 percent tariff on up to $50 billion in Chinese
imports. China is retaliating by raising import duties on $34 billion
worth of American goods, including soybeans, electric cars and whiskey.
Trump also has slapped tariffs on steel and aluminum imports from
Canada, Mexico and European allies.
had announced a 25 percent tariff on up to $50 billion in Chinese
imports. China is retaliating by raising import duties on $34 billion
worth of American goods, including soybeans, electric cars and whiskey.
Trump also has slapped tariffs on steel and aluminum imports from
Canada, Mexico and European allies.
Pompeo
on Monday described U.S. actions as “economic diplomacy,” which, when
done right, strengthens national security and international alliances,
he added.
on Monday described U.S. actions as “economic diplomacy,” which, when
done right, strengthens national security and international alliances,
he added.
“We
use American power, economic might and influence as a tool of economic
policy,” he said. “We do our best to call out unfair economic behaviors
as well.”
use American power, economic might and influence as a tool of economic
policy,” he said. “We do our best to call out unfair economic behaviors
as well.”
In
a statement, Trump says he has an “excellent relationship” with Xi,
“but the United States will no longer be taken advantage of on trade by
China and other countries in the world.”
a statement, Trump says he has an “excellent relationship” with Xi,
“but the United States will no longer be taken advantage of on trade by
China and other countries in the world.”
___
Karoub reported from Detroit. AP writer Ken Thomas contributed
