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The Art of the Deal: Trump Raises Stakes and Tariffs on $200 Billion in Chinese Goods

Today, President Donald Trump raised US tariffs Friday on $200 billion in Chinese goods and threatened even more in an effort the obtain trade concessions, saying there’s “no need to rush” the deal.

China says they will have no recourse other than retaliation if the tariffs go into place, although negotiations continued and there was no mention of what kind of retaliation that would be. The move by Trump is seen as playing hardball after Thursday’s negotiations made little progress. Talks were to resume today.

“Talks with China continue in a very congenial manner – there is absolutely no need to rush,” the president tweeted on Friday. “In the meantime we will continue to negotiate with China in the hopes that they do not again try to redo deal!”

 

With the tariff money, the president vowed the US will buy more “agricultural products from our Great Farmers, in larger amounts than China ever did, and ship it to the poor and starving countries in the form of humanitarian assistance.”

However, is China actually paying the tariffs? No, in actuality it’s US Businesses abroad, as well as consumers in the US who will bear the brunt of raising tariffs on goods from China. Many believe the president is using his own “art of the deal” rules to attempt to win negotiations with China, believing China needs us more than we need them. Others feel the tariffs are an attempt to bring US companies’ manufacturing facilities back to the US in order to avoid the tariffs and increase jobs.

In one of his tweets on Friday, Trump also said “the process has begun” to impose 25% tariffs on a further $325 billion in goods from China. That raises the prospect of all of China’s goods exports to the U.S. — worth about $540 billion last year — being subject to new import duties.

<blockquote class=”twitter-tweet”><p lang=”en” dir=”ltr”>….If we bought 15 Billion Dollars of Agriculture from our Farmers, far more than China buys now, we would have more than 85 Billion Dollars left over for new Infrastructure, Healthcare, or anything else. China would greatly slow down, and we would automatically speed up!</p>&mdash; Donald J. Trump (@realDonaldTrump) <a href=”https://twitter.com/realDonaldTrump/status/1126821035146469376?ref_src=twsrc%5Etfw”>May 10, 2019</a></blockquote> <script async src=”https://platform.twitter.com/widgets.js” charset=”utf-8″></script>

The new tariffs that took effect at 12:01 a.m. Washington time Friday raise from 10% to 25% the duties on more than 5,700 different product categories from China — ranging from cooked vegetables to Christmas lights and highchairs for babies.

U.S. officials have said the new duties will not apply to goods already on boats headed for American shores. A 25% tariff is already in place on a further $50 billion in imports from China.

 

 

Sarah Morton

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