Trade Gap With China Isn’t the Problem, CEO Group Says

  • Trade Gap With China Isn’t the Problem, CEO Group Says

Trade Gap With China Isn’t the Problem, CEO Group Says

The Trump administration threatened to raise proposed tariffs on Chinese imports from 10 percent to 25 percent, escalating us trade tensions with Beijing.

One of the cited reasons behind today's market slide which started in Asia and promptly swept the rest of the globe, is a belated appreciation of Tuesday's news that the Trump administration is now considering more than doubling proposed tariffs on a further $200 billion worth of Chinese goods to 25%, up from an original 10%. "Now, the USA coerces and pressures others unilaterally".

"In light of China's decision to respond to the investigation by imposing duties on USA goods, the Trade Representative proposes a modification of the action taken in this investigation".

Despite the fact that some USA media have linked the proposal to hike tariffs to a sharp drop in the Chinese currency, senior United States officials downplayed that idea in a telephone call with reporters.

President Trump and the European Commission President Jean-Claude Juncker agreed last week to put their tariffs on hold while the two sides negotiate, including on the dispute over steel tariffs, which gives the USA more leverage to pressure China.

General Electric (GE.N) estimated the new tariffs on its imports from China could raise its costs by $300 million to $400 million overall, before steps to lessen the impact while General Motors Co (GM.N), Ford Motor Co (F.N) and Fiat Chrysler Automobiles NV (FCHA.MI) (FCAU.N) have lowered their full-year profit forecasts. Beijing responded by imposing the same penalties on the same amount of US imports. "We hope that those directly involved in the United States' trade policies can calm down, carefully listen to the voices of USA consumers.and hear the collective call of the worldwide community".

China's foreign minister said Thursday that USA threats to hike tariffs run against the trend toward globalization and will hurt US businesses and consumers.

Officials, however, downplayed suggestions the move was meant to compensate for the recent decline in the value of the Chinese currency, which has threatened to take much of the sting out of Mr. Trump's tariffs by making imports cheaper.

That fell apart shortly after it was announced by USA officials and amid acrimony in the negotiating team sent to Beijing due to disagreements over the concessions that would be made to China.

Mr Trump has threated to slap tariffs on virtually all of China's exports to the United States.

The White House says the tariffs are a response to China's unfair trade policies, which Mr Trump blames for helping to create a huge trade deficit. "This won't work on China", Geng said.

Mr Trump has ultimately threatened tariffs on more than $US500bn in Chinese goods, covering virtually all United States imports from China.

The USTR said it will extend a public comment period for the US$200 billion list to Sept 5 from Aug 30 due to the possible tariff rate rise.