China records trade surplus with U.S despite Trump’s tariffsc

America’s Donald Trump’s tariffs against
China are not yet quenching America’s appetite for Chinese goods as
China’s trade surplus with the United States ballooned to a new record
$31 billion in August.

The official data was released hours
after President Donald Trump threatened to slap tariffs on the totality
of $500 billion Chinese goods imported into the United States.

It is believed that the data may further accelerate Trump’s threat to go for broke.

Chinese exports to the United States rose
to $44.4 billion in August, a 13.2 percent increase from the same
period last year, according to customs data. Imports from the United
States reached $13.3 billion, a two percent increase
from the previous year.

China’s trade surplus with the United
States reached $31 billion in August, an 18.7 percent increase from the
same month last year and up from its previous record, $28.9 billion, in
June this year, according to customs data.

While China’s trade surplus with the
United States grew again, it remained stable with the rest of the world
at $27.9 billion in August.

Global exports increased by 9.8 percent
while its imports rose by 20 percent compared to the same month last
year, according to customs data.

The figures were well below July’s performance, when exports had jumped 12.2 percent and imports grew 27 percent.

The world’s two biggest economies have
been locked in a months-long trade dispute, with negotiations going
nowhere and fears that it could damage the global economy.

Trump imposed customs duties of up to 25
percent on $34 billion worth of Chinese goods in July, and on another
$16 billion in August, triggering swift tit-for-tat responses from
Beijing.

Trump has boasted that trade wars are
“easy to win” and warned he would hit virtually all Chinese imports if
Beijing does not back down and take steps to reduce its $335 billion
surplus with the US.

He said Friday that tariffs on another $200 billion in Chinese goods are “in the hopper” and “could take place very soon”.

Beijing has warned that it would hit back
with duties on $60 billion in American products — a much smaller figure
that shows China will not be able to match US tariffs
dollar-for-dollar.

But businesses warn there are other ways
China can strike back, through regulations and other administrative
means, or even through sales of its large holdings of US Treasury debt.

Trump told reporters travelling with him
to Fargo, North Dakota that “behind that, there’s another $267 billion
ready to go on short notice if I want.”

That would cover virtually all the goods imported from the world’s second largest economy.

“That totally changes the equation,” Trump said.

White House economic adviser Larry Kudlow
just hours before said talks with Beijing were continuing to try to
defuse the conflict, and that he was hopeful that a solution could be
found.

The last effort at a negotiated solution came in late August with meetings between low-level officials, but nothing came of it.

In Beijing, China’s Commerce Ministry said Thursday it was ready to retaliate.

“If the US dogmatically implements any
new tariff measures against China, China will have to take the necessary
countermeasures,” commerce spokesman Gao Feng told reporters.