Chinese state media slams Trump for 'extortion' in trade dispute

Lloyd Doyle
August 6, 2018

President Trump speaks during a campaign rally July 31 at the Florida State Fairgrounds Expo Hall in Tampa.

But based on the latest trade numbers, released Friday, it appears Trump is falling short of his main goal for trade battles; the U.S. trade deficit is actually heading in the opposite direction.

The vitriol from the People's Daily follows Trump's comments on Twitter from Saturday in which he boasted that his strategy of placing steep tariffs on Chinese imports was "working far better than anyone ever anticipated", and that Beijing was now talking to the United States about trade.

China has announced retaliatory tariffs on $US60 billion ($81bn) worth of USA goods ranging from liquefied natural gas (LNG) to some aircraft and warned of further measures, signalling it will not back down in a protracted trade war with Washington.

The White House issued a statement Friday, condemning the proposal. Neither side is showing any sign of backing down.

"Tariffs have had a tremendous positive impact on our Steel Industry", he tweeted. In negotiations with China, Trump's major request was a massive reduction in the bilateral trade deficit. "Likewise other countries. We are Winning, but must be strong!"

China is proposing a 25% tariff on imports of USA liquefied natural gas, a major blow to an emerging American business. China responded with a 178.6 percent tariff on the roughly $1 billion in sorghum that the US imports to China each year.


The two countries have already imposed about $34 billion worth of tariffs on each other. "We win either way".

'Tariffs are working big time. The trade gap narrowed in April and May as farmers front-loaded soybean exports to China before Beijing's retaliatory tariffs came into effect in early July.

More from Bloomberg.com: U.S. This makes the products more expensive and less attractive for US consumers.

"Every country on Earth wants to take wealth out of the U.S., always to our detriment". The White House initially announced tariffs - 25 percent on steel and 10 percent on aluminum - arguing they would protect US companies and allow for the creation of new manufacturing plants - key Trump promises in the 2016 presidential campaign.

The White House is now negotiating with South Korea and the European Union regarding trade agreements for soy beans, energy products, steel and aluminum.

Kudlow, a devout free trade supporter who criticized Trump's approach before joining the White House this year, has tried to steer the president toward an embrace of an idea that every country remove all of their tariffs in a way that would still achieve conservative political goals.

President Donald Trump is losing his trade wars - at least according to his favourite measure of success.

Other reports by Iphone Fresh

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