US President Donald Trump has predicted China’s full economic downfall by the time the trade war between the two countries is over, urging Beijing to make a deal soon.
Think what happens to China when I win. Deal would get much tougher!
the US president tweeted on Tuesday.
He stated that although negotiations between China and the US are continuing, Beijing is unlikely to withstand the ongoing trade war for much longer.
“China’s supply chain will crumble and businesses, jobs and money will be gone,” he tweeted, a day after a fresh batch of US tariffs on both countries’ goods came into effect.
….And then, think what happens to China when I win. Deal would get MUCH TOUGHER! In the meantime, China’s Supply Chain will crumble and businesses, jobs and money will be gone!
— Donald J. Trump (@realDonaldTrump) September 3, 2019
Over the weekend, the US introduced a 15 percent tariff hike on Chinese imports, an increase from the previous 10 percent. It is the first set of new tariffs, targeting a combined total of some $300 billion-worth of Chinese goods, threatened by Washington. The 122-page list of goods with increased tariffs, effective from September 1, covers a wide range of products, including many household items. These include clothing and accessories, footwear, home textiles, baby products – such as diapers and pacifiers – as well as TV panels, coffee, whiskey, dairy products, meat, cheeses, and textbooks. If the countries fail to strike a good-for-all trade deal, further tariffs are scheduled for December 15.
Beijing responded immediately with tariffs ranging from five to ten percent on $75 billion-worth of American imports, mostly affecting products that are sensitive for the US agricultural sector. Soybeans will face an extra five percent tariff, while beef and pork will be hit with an additional 10 percent duty.
Beijing also filed a complaint at the World Trade Organization on Monday over the latest round of US tariffs which it claims violated a consensus reached by leaders of both countries in Osaka, Japan earlier this year.
The trade dispute between the world’s two biggest economies, which has been rapidly expanding over the past three months, has been the bane of investors across the world. US stocks fell sharply in early trading on Tuesday, the first trading day of the month, right after Trump’s tweets were posted. The Dow Jones Industrial Average traded more than 350 points lower, or 1.2 percent. The S&P 500 lost 0.9 percent while the Nasdaq Composite fell by 0.8 percent.
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