Historic Economy Perfect Time ‘to Straighten Out Worst Trade Deals Ever Made'

Here's Why Trump Is Hiking Chinese Tariffs To 25%

Here's Why Trump Is Hiking Chinese Tariffs To 25%

President Donald Trump is defending his tariffs after China threatened an additional $60 billion levied on American goods amid an escalating trade war between the two economic giants.

"Tariffs are working far better than anyone ever anticipated", Trump tweeted, citing losses in the Chinese market.

But Shi said the retaliatory trade measures were not over yet. Plants are opening all over the U.S., Steelworkers are working again, and big dollars are flowing into our Treasury. According to Reuters, the Chinese commerce minister said in a statement after the latest round of tariff threats that the USA had "repeatedly escalated the situation against the interests of both enterprises and consumers".

Beijing has insisted its measures are "rational" and warned the USA its tactics would not work.

On March 1, President Donald Trump announced that the US would be slapping a 25 percent tariff on all steel imports and a 10 percent tariff on all aluminum imports.

China has either imposed or proposed tariffs on $110 billion in US goods, representing the vast majority of its annual imports of American products. Coca-Cola is raising prices on its drinks because his aluminum tariffs are making its cans more expensive, the company says.

If China carries through on its latest threat, it will be imposing some form of tariffs on almost all of the $130 billion in goods it imports from the U.S.

President Donald Trump this week ordered officials to consider imposing a 25 per cent tax on US$200 billion worth of imported Chinese goods, up from an initial 10 per cent rate.

"If the United States act willfully and puts its additional tariff measures into effect, China will instantly implement such tariff measures", the commission said.

Separate releases recently showed growth in China's manufacturing sector slowing in July and one measure of United States consumer sentiment falling due to tariff concerns, according to media reports.

Trump apparently believes he can control the response of United States trading partners to his threats and intimidations, and that he can conclude token trade deals, if necessary, to avoid falling over the trade cliff of currency devaluations.

"We have really rebuilt China, and it's time that we rebuild our own country now", Trump said, adding that the Europeans were "dying to make a deal".

The White House has responded by saying Beijing's threats are weak and that the Chinese economy is in trouble.

Trade tensions between the US and China have been escalating for months, driven by President Trump's aggressive rhetoric and policy positions.

"Year-to-date, the goods and services deficit increased $19.6 billion (R260 billion), or 7.2%, from the same period in 2017", the Census Bureau said in a press release.

The smaller list of goods tagged by China indicates Beijing is running out of products to target due to its lopsided trade balance with the United States.

The Ministry threat came after Mr. Wang met with U.S. Secretary of State Mike Pompeo at a meeting of the Association of Southeast Asian Nations (ASEAN) in Singapore on Friday.

And while America's trade deficit with Europe shrank in June, it grew with both Canada and China.

But for the Chinese regime, Washington's demands mean that it should cease its efforts to move up the industrial and hi-tech ladder and take a subservient position in relation to the United States, something which it regards as intolerable.

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