The trade war between the two largest economies United States and China started after Trump imposed tariffs on Chinese steel and aluminium, which also prompted a response from China.
Donald Trump, has heightened the trade war rhetoric with China on Thursday, saying he was considering to ‘slap’ the U.S. trade rival with another 100 billion dollars in tariffs.
The U.S. had also announced new tariffs on 50 billion dollars worth of Chinese goods, claiming that China was stealing U.S. intellectual property.
In a statement issued by the White House late on Thursday, Mr Trump criticised China’s tit-for-tat response to his announcement of 25 per cent tariffs on some $50bn in imports related to Beijing’s alleged theft of US intellectual property. Beijing on Wednesday released a list of more than 100 US products, including agricultural commodities such as soyabeans, targeted for retaliatory tariffs.
“Rather than remedy its misconduct, China has chosen to harm our farmers and manufacturers,” Mr Trump said. “In light of China’s unfair retaliation, I have instructed the US Trade Representative to consider whether $100bn of additional tariffs would be appropriate . . . and, if so, to identify the products upon which to impose such tariffs.”
Trump disclosed that he had instructed the U.S. Trade Representative (USTR) Robert Lighthizer to “identify the products upon which to impose” the additional tariffs he suggested.
Lighthizer, in a statement late Thursday, said Trump’s request was, “appropriate. “China has chosen to respond thus far with threats to impose unjustified tariffs on billions of dollars in U.S. exports, including our agricultural products.
“Such measures would undoubtedly cause further harm to American workers, farmers, and businesses. Under these circumstances, the President is right to ask for additional appropriate action to obtain the elimination of the unfair acts, policies, and practices identified in USTR’s report.”
In retaliation, China responded within hours by announcing 50 billion dollars worth of tariffs on U.S goods. Chinese Foreign Ministry Spokesperson told the media in Beijing: “We have been saying that China wouldn’t start a trade war.“But we are not afraid of it, and we will resolutely fight to the end if someone insists on a war.”
The U.S. has threatened to levy import taxes on more than 1,300 Chinese products, including televisions, dishwashers and printers.
In response, China has vowed to target key U.S. exports, including soybeans.
“Chinese analysts warned the US that it stood more to lose politically from a worsening tit-for-tat trade dispute that has unnerved global markets.
” China was prepared to adopt “comprehensive countermeasures” in its dispute with the US, adding: “China doesn’t want a trade war, but we’re not afraid to fight a trade war.”