China To Slap Tariffs on $75 Billion of U.S. Imports, as Trump Hikes Tariffs 5-10% More on All China Imports
Aug. 23, 2019 (EIRNS)—Today China announced tariff hikes on $75 billion worth of imports from the U.S., to go into effect in two batches, Sept. 1 and Dec. 15, with varying rates of tariffs (5% to 25%) and types of goods involved. This fulfilled China’s prior indications that they would retaliate, after President Donald Trump announced Aug. 1 that the U.S. would apply a 10% tariff on $300 billion of Chinese imports, set to start going into effect Sept. 1.
Within seven hours of China’s announcement, President Trump made his response, which raised tariffs on two groups of imports from China. He upped the 10% to 15% tariffs on the $300 billion of Chinese imports already identified, and he said he was raising duties to 30%, from 25%, on an additional $250 billion worth of imports already identified. This latter levy is to go into effect Oct. 1. At this point, almost all trade between the two nations is under increased tariffs. Trump also ordered U.S. companies to leave China, for elsewhere, or to return Stateside.
Trump has issued his comments and orders in two blasts of tweets against China; he called a midday meeting at the White House with economic advisers. Attending were Treasury Secretary Steven Mnuchin, U.S. Trade Representative Robert Lighthizer, economic adviser Larry Kudlow, and trade adviser Peter Navarro.
The Dow Jones Index had plunged 623 points at close of trading today; and other stock exchanges likewise dropped.
A string of appeals for calm response are now coming out from U.S. economic sector leaders, including the U.S. Chamber of Commerce, National Farmers Union, and U.S. Retail Association.
Trump tweeted this morning:
“Our Country has lost, stupidly, Trillions of Dollars with China over many years. They have stolen our Intellectual Property at a rate of Hundreds of Billions of Dollars a year, & they want to continue. I won’t let that happen! We don’t need China and, frankly, would be far better off without them. The vast amounts of money made and stolen by China from the United States, year after year, for decades, will and must STOP. Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA. I will be responding to China’s Tariffs this afternoon. This is a GREAT opportunity for the United States. Also, I am ordering all carriers, including Fed Ex, Amazon, UPS and the Post Office, to SEARCH FOR & REFUSE, all deliveries of Fentanyl from China (or anywhere else!). Fentanyl kills 100,000 Americans a year. President Xi said this would stop—it didn’t. Our Economy, because of our gains in the last 2 1/2 years, is MUCH larger than that of China. We will keep it that way!”