China may have 'underestimated' Trump's resolve

Lester Mason
June 20, 2018

President Donald Trump is calling for 10 percent tariffs on $200 billion in Chinese imports.

The U.S. imported $505 billion of goods from China previous year and exported about $130 billion, leaving a 2017 trade deficit of $376 billion, according to U.S. government figures.

Carrie echoed the concern of New Democrat trade critic Tracey Ramsey, who cited Monday's TD Economics report that said auto tariffs could result in the loss of one in five auto sector jobs and create permanent "scarring" of the Canadian economy.

Trump said that if China responds to this fresh round of tariffs, then he will move to counter "by pursuing additional tariffs on another $200bn of goods". Beijing immediately retaliated with a 25-percent tariff on 545 American products worth $50 billion, which will come into force on the same day.

In a statement issued by the White House press office on Monday, Trump said, "I have an excellent relationship with President Xi, and we will continue working together on many issues".

Set to an unflattering picture of Trump with his hair flying in the wind, the WeChat account of the ruling Communist Party's People's Daily said China had the confidence and the ability to win the trade battle.

For months, the US and China have traded tit-for-tat trade threats, and they have escalated again in just the last few days. "We don't care where they wear them, and if they get scuffed up, all the better so we can sell them more".

"If the USA side becomes irrational and issues the list, China will have to adopt comprehensive measures in quantity and quality in order to make strong countermeasures", said the statement.

The White House said Monday evening that if China goes through with its promise to retaliate against the USA tariffs announced last week, the United States will impose tariffs on an additional $200 billion worth of Chinese goods. But last week, Trump unveiled a revised list that included several categories of chips, raising fears that tariffs could impact the U.S. technology sector. It remains unclear when and exactly how the new tariffs willl take effect.

Dr Oliver said the first round of tariffs hit just 2 per cent of USA imports.

Dr Zhou and her team had looked at the United States imposing tariffs on China without any retaliation, China imposing tariffs on USA goods, and an all-out trade war between the two. US bond yields fell in a flight to safety. For that to happen though, it is important that the iPhone be allowed to cross the USA and China borders unfettered by tariffs. "We can no longer be the stupid country", Trump said.

The dollar fell 0.45 percent to 110.06 yen following Trump's tariff comments.

The Commerce Ministry criticized Trump's order to prepare tariffs on $200 billion of Chinese goods as blackmail.

Trudeau has promised to retaliate against steel and aluminum tariffs the US has put on Canada's metals industries.

"China is an increasingly small portion of imports and, with Section 201 in place, it pretty much killed prospects for anyone competitively importing from China to the U.S".

Hong Kong's Hang Seng Index (HSI) closed down 2.76 percent, while Japan's Nikkei lost 1.77 percent and Korea's Kospi Index down 1.54 percent.

Other reports by Iphone Fresh

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