UPDATED 10:34 AM PT — Monday, May 13, 2019
It seems to be another round of tit for tat measures between the U.S. and China as Beijing announced it will raise tariffs on $60 billion worth of U.S. imports. The announcement comes just days after President Trump raised tariffs on $200 billion worth of Chinese goods from 10-percent to 25-percent after officials from both countries failed to reach a deal.
In a series of tweets Monday, President Trump dismissed concerns the U.S. consumer would pay for the tariffs on Chinese goods, adding, the tariffs could be completely avoided if companies buy or manufacture in the U.S. He continued on his tough stance against China, saying the country has taken advantage of the U.S. for years. His comments echo his campaign pledge of holding China accountable for its trade abuses:
“And I like the President (Xi Jinping) a lot; he’s a friend of mine, but I’m representing the USA, and he’s representing China. And we’re not going to be taken advantage of anymore. We’re not going to be paying China $500 billion a year.”
In another tweet, the president said China backed out of “a great deal” and urged Beijing not to retaliate, but rather make a deal. Those statements didn’t seem to deter China, with Beijing announcing it will be raising tariffs on $60 billion of U.S. imports and would range from five-percent to 25-percent beginning June 1st.
News of the impending tariffs on U.S. goods took a hit on the stock market with Dow futures more than 500 points in the red before Monday’s opening bell.
The U.S. Trade Representative’s Office stated its already started the process of levying tariffs on another $325 billion worth of Chinese goods, which analysts say would impact nearly every Chinese import.
While there are no official trade talks planned after Friday’s stalemate in negotiations, Americans can expect President Trump to use his negotiation skills to achieve the best deal that benefits the U.S.