Canada is none too happy. Mexico has decided to get its corn and beef from South American countries rather than the United States. Europe, too, is less than pleased with Trump’s out of the blue tariffs especially since he says they are necessary for national security.
Now, China said says it won’t increase step its purchases of American products if President Donald Trump goes ahead with his threat to tax billions of dollars’ worth of Chinese imports. White House advisers insisted on fundamental changes in ties between the world’s two biggest
U.S. Commerce Secretary Wilbur Ross and China’s top economic official, Vice Premier Liu He, met to discuss Beijing’s pledge to narrow its trade surplus. Although the talks dealt with American exports China might purchase, they ended with no joint statement nor with any details being released.
What is known is that the risk of a full-blown China-U.S. trade war has risen significantly
Not only had the United States threatened to impose tariffs on up to $50 billion of Chinese products over aggressive tactics challenging U.S. technological dominance, but Trump now wants another $100 billion in Chinese products to tax.
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China had promised, in the middle of May, to increase its purchases of U.S. farm, energy, and other products, the U.S. tariffs were suspended and the trade war was put on hold, which was meant to reduce America’s massive trade deficit in goods and services, but Trump renewed his threat to impose 25% tariffs on $50 billion in Chinese high-tech goods at the beginning of June.
The most recent meeting was held to work out details of the earlier agreement, but China balked at making concessions unless the U.S. lifted the tariff threat.
“If the United States introduces trade sanctions including a tariff increase, all the economic and trade achievements negotiated by the two parties will not take effect,” said a Chinese government statement in the official Xinhua News Agency.
Trump’s tough talk very well add China to the list of countries he has angered with his tariffs, and could create alliances, at least economic ones, that will leave the U.S. on the outs.