Trump Has No Idea How Tariffs Work And It's Harming Americans

Trump Has No Idea How Tariffs Work And It's Harming Americans

A commentary in Chinese state-run news agency Xinhua, citing Chinese academics at a think tank over the weekend, said that facing US tariff hike threats, China has adhered to its bottom line, defended national dignity and people's interests.

With investors anxious about the potential economic damage on all sides from the escalating trade war, the Dow Jones Industrial Average fell 617 points, or 2.4%, and the technology-heavy Nasdaq plunged 270 points, or 3.4%, its biggest drop of the year.

Asian shares opened weaker but closed off the lows, thanks to the more upbeat official tone. Both sides held a round of talks Friday in Washigton on resolving contentious trade issues, but with little progress to show.

The president has been using tariffs like a cudgel to force China to the negotiating table. That reversal spurred Trump's move last week's to raise tariffs from 10% to 25% on a $200 billion tranche of imports from China. In doing so, American officials accused China of backtracking on commitments it made in earlier negotiations. He wants a better deal for America, and for China to crack down hard on such anti-competitive practices as intellectual property theft, which is rife, and heavy subsidizing of industries, like steel.

Wall Street suffered its worst day in months following news that China plans to retaliate with tariffs against the United States. "You had a great deal, nearly completed, & you backed out!"

ANZ Research believes the odds of reaching a "real deal" are "less than half".

The additional tariff of 25% will be levied against 2,493 goods including liquefied natural gas, soy oil, peanut oil, petrochemicals, frozen vegetables and cosmetics, the ministry said, and of 20% on 1,078 products.

Heightened trade tensions between the USA and China over the last few days, that seemed to catch many media outlets and pundits off-guard, were actually always lurking just beneath the surface. China was expected to beef up protection for trade secrets and offer foreign companies wider access to the Chinese market.

Both countries have indicated that more talks are likely. But nothing has been scheduled.

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"I think that China felt they were beaten so badly in the recent negotiation that they may as well wait around for the next election, 2020, to see if they could get lucky & have a Democrat win - in which case they would continue to rip-off the U.S. for $500 Billion a year", Trump said.

Trump had already hit a further $50 billion in Chinese goods with tariffs of 25 percent last summer.

Kudlow was considerably more measured on Fox News Sunday.

Over the following weekend, he demanded that China accept the deal already proposed by the United States, or face a "far worse" deal after his re-election. "Losing a valuable market, losing stable pricing, losing an opportunity to support our families and our communities". The administration previous year handed farmers aid worth $11 billion to offset losses from trade conflicts. China has the resolution, courage, and confidence to rise to all sorts of challenges, they said.

As negotiations towards resolving the U.S.

The president's allies in Congress scrambled to limit the damage to farm country.

"There's no clear cut "we're hurting them" or 'they're hurting us.' We're hurting ourselves at the same time", Burns said.

Monday's Chinese action came soon after Trump had tweeted out that without a deal, China will be hurt so badly that there will be nobody left in the country to do business with.

The higher Chinese tariffs don't kick in until June 1. They're taxes that American companies pay. "Our results imply that the tariff revenue the now collecting is insufficient to compensate the losses being born by the consumers of imports", the study found.

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