Published: Wed, July 11, 2018

Trump Must Meet Xi to Stop Trade War, Top House Republican Says

Trump Must Meet Xi to Stop Trade War, Top House Republican Says

Trump has been following through on pledges he made during his presidential campaign to get tough on China, which he accuses of unfair trade practices including theft of intellectual property and forced technology transfer that have led to a $375 billion USA trade deficit with China. His determination to renegotiate trade deals has targeted not only competitors on the world market such as China, but longtime friends and allies such as the European Union or Canada. China responded with levies of its own, targeting $34 billion in USA products such as pork and whiskey.

"Tariffs on such a broad scope of products make it inconceivable that American consumers will dodge this tax increase as prices of everyday products will be forced to rise", David French, the group's senior vice president for government relations, said in a statement.

The US listed $200bn (£150bn) worth of additional products it intends to place tariffs on as soon as September.

Members of Congress are increasingly questioning Trump's aggressive trade policies, warning that tariffs on imports raise prices for consumers and expose US farmers and manufacturers to retaliation overseas.

USA tariffs of 25 percent on $34 billion of Chinese imports went into effect on July 6.

China formally responded to the latest United States move on Wednesday, with a Chinese Ministry of Commerce spokesperson calling it "unacceptable".

House Ways and Means Committee chief Kevin Brady, of Texas, warned of "a long, multi-year trade war between the two largest economies in the world that engulfs more and more of the globe".


U.S. President Donald Trump has said he may ultimately impose tariffs on more than $500 billion worth of Chinese goods - roughly the total amount of U.S. imports from China past year. The administration says its tariffs are created to punish China for what it calls unfair trade practices, theft of intellectual property, and "forced technology transfers". China, for example, exports far more to the USA than the US exports to China, resulting in Beijing's trade surplus of $375.2 billion in 2017.

According to the Wall Street Journal, China began to shift their purchases away from United States farmers to Brazilian soybeans in the spring.

In addition, the U.S.is considering separate duties on a further US$16 billion in Chinese goods, after a public hearing later this month.

The dramatic move by Trump sent a shockwave through Asian markets last night, with the Shanghai Composite index dropping 2.1 per cent and the CSI300 index of major Shanghai and Shenzhen stocks tumbling 2 per cent. The U-S Chamber of Commerce says the proposed measure would ultimately hurt American families.

'Tonight's announcement appears reckless and is not a targeted approach, ' Senate Finance Chairman Orrin Hatch said. There have been no confirmed high-level talks between to two sides since early an early June visit to Beijing by U.S. Commerce Secretary Wilbur Ross that achieved no breakthroughs.

Global markets in turmoil as Trump intensifies trade war once again.

Mr Trump has been considering tariffs against China since his officials concluded in March that Beijing violates USA intellectual-property rights, such as by forcing American firms to hand over technology.

Like this: