Financial news

China Threatens to Retaliate After Trump Announces New Tariff Hike

By  | 

Via Economic Policy Journal

Xi Jinping 

Well, this shouldn’t come as a surprise.

Chin is threatening to levy retaliatory tariffs against the U.S. in response to President Trump’s announcement that the U.S. would place new tariffs on Chinese goods beginning next month.

China’s government accused Trump of violating his agreement with President Xi Jinping to revive negotiations aimed at ending a trade war between the two economic powerhouses, The Associated Press
reports.
And he did.

Xi and Trump had agreed to hold off on implementing additional tariffs during a June meeting at the Group of 20 summit.

If the new tariffs do go into effect, “China will have to take necessary countermeasures to resolutely defend its core interests,” foreign ministry spokeswoman Hua Chuying told reporters, according to the AP.

“We don’t want to fight, but we aren’t afraid to,” Hua said. She called on the Trump administration to “abandon its illusions, correct mistakes, and return to consultations based on equality and mutual respect.”

Of course, retaliatory tariffs are as misguided as Trump’s tariffs, they will hurt the Chinese people but this is the state of international trade in the Age of Trump.

As for Trump, he may be playing to his base ahead of the 2020 presidential election with his tough-guy trade posture, even though U.S. farmers, workers, consumers and businesses are hurt. Trump’s people are perhaps willing to sacrifice. It’s the John Wayne act over sound policy.

RW


Print Friendly, PDF & Email

Hold dit netværk orienteret

READ ALSO  New smart meter deadline impossible to achieve, energy chiefs warn