Published: Thu, June 21, 2018
Money | By Armando Alvarado

Trump trade adviser says tariffs are 'necessary to defend this country'

Trump trade adviser says tariffs are 'necessary to defend this country'

There is no end in sight to the trade fight, as both sides continue to up the ante.

Freeland told the committee the "absurd and insulting" US metal tariffs will be met with a firm response on July 1. The administration also revived its complaints Tuesday about America's gaping trade deficit with China, which it says reflects an unfair trading relationship.

Last week Mr Trump announced the U.S. would impose 25% tariffs on $50bn worth of Chinese goods. More than 800 exports, about $34 billion worth, will be subject to tariffs starting July 6.

Beijing immediately retaliated by matching the United States levy, but Mr Trump asked officials on Monday to identify $200bn of Chinese goods to be subject to a 10% tariff.

President Donald Trump is calling for tariffs on $200 billion in Chinese imports, drawing a rebuke from China.

The now compiling a list of $200 billion in Chinese imports to tax at 10 percent.

While there are no winners in a trade war, the USA is focused on protecting United States technology and sees the tariffs on Chinese tech products as a legitimate action.

"He's upping the ante", Wendy Cutler, a former USA trade negotiator who is now at the Asia Society Policy Institute, said of Trump. Weaker Chinese growth will have repercussions for big trading partners, such as the United States and Europe, and for global companies who do business there. For that to happen though, it is important that the iPhone be allowed to cross the US and China borders unfettered by tariffs. The Dow tumbled 287.26 points or 1.2 percent to 24,700.21, while the Nasdaq fell 21.44 points or 0.3 percent to 7,725.58 and the S&P 500 slid 11.18 points or 0.4 percent to 2,762.57. Shares of large USA companies with significant overseas business were hit especially hard. The blue chip CSI300 index fell 3.6 percent to 3,621.12.

China's commerce ministry immediately responded by saying the usa "practice of extreme pressure and blackmail departed from the consensus reached by both sides during multiple negotiations and has also greatly disappointed worldwide society".

China's commerce ministry reacted swiftly, saying: "If the USA acts irrationally and issues a list, China will have no choice but to take comprehensive measures of a corresponding number and quality and take strong, powerful countermeasures". China's Commerce Ministry has already responded, saying they will adopt counter measures.

China has hiked its list of USA goods on which it said it would slap tariffs six-fold from a version released in April, but the value was kept at US$50 billion, as some high-value items such as commercial aircraft were deleted.

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"We can no longer be the stupid country", Trump said.

Companies that do a lot of business in China were among the biggest losers on the Dow on Tuesday.

The tariffs would start to slow USA growth, economists warn.

Spooked by worsening tensions over trade between the world's two largest economies, investors are selling stocks and commodities and buying safer assets.

This example highlights that any imposition of tariffs on Chinese goods will not only impact the Chinese economy.

Asked about Trump's comments on his way out of a cabinet meeting, Public Safety Minister Ralph Goodale said he had not heard Trump's allegation, but said that he has every confidence in his border officers.

Mr Trump recently ordered tariffs on 50 billion dollars in Chinese goods in retaliation for intellectual properly theft. The next step will be for the Office of the U.S. Trade Representative to identify the Chinese goods to be penalized and to conduct a legal review. On Friday evening, China announced tariffs on USA products of an equal amount and implemented them on the same date (6 July) as the United States intends to implement tariffs on China. Soybeans are on the list - a direct shot at a swath of Trump supporters in the American heartland.

In essence, they said, consumers are likely to pay more for goods that are subject to tariffs and buy less as a result, which would slow the growth of the USA economy.

Ramsey said the government needs "a comprehensive auto strategy that isn't just about a pool of money but also a strategy across the board in our own country to combat the threat of these tariffs". They included tariffs on steel and aluminum imports and a combative stance on trade negotiations from North America to Asia.

The Deutsche Bank economists Brett Ryan, Peter Hooper, and Matthew Luzzetti found that the tariffs introduced by Trump could push up inflation and result in a drag on economic growth. "Because the United States does a very good job, I believe, in following the WTO regulations, the World Trade Organization".

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