Trump Ratchets Up Trade War With New China Tariffs
Americans and US companies will be paying higher prices on many goods manufactured in China as the result of new 25% tariffs the Trump Administration levied last night.
New York Times: "President Trump escalated his trade war with China on Friday morning, raising tariffs on $200 billion worth of Chinese goods and taking steps to tax nearly all of China’s imports as punishment for what he said was Beijing’s attempt to “renegotiate” a trade deal."
"Mr. Trump’s decision to proceed with the tariff increase came after a pivotal round of trade talks in Washington on Thursday night failed to produce an agreement to forestall the higher levies. The White House said talks would resume again on Friday but it remains uncertain whether the two sides can bridge the differences that have arisen over the past week."
In a tweet this morning, Trump stated that he didn't see any reason to hurry to find a way out of the trade stand-off and that the tariffs will be good for the American economy.
The Guardian: "Trump also argues that tariffs are “bringing wealth into America” even though economists keep pointing out that they are paid by US companies, not Chinese ones."
China has promised countermeasures but hasn't specified what form they will take yet. Chris Krueger, an analyst with Cowen’s Washington Research Group thinks China might opt for non-tariff barriers this time.
Washington Post: "During the past year of tit-for-tat tariff exchanges, China has imposed tariffs on all but $10 billion of its purchases from the United States."
"To keep pace with Trump’s planned escalation, Beijing may use other weapons, including state-backed boycotts of American products, tighter customs inspections and intensified tax audits of U.S. companies, Krueger said."
"The economic and political fallout from such steps “are a lot harder to predict and prone to accident,” he added."