“We have lost 500 Billion Dollars a year, for many years, on Crazy Trade with China. NO MORE!”
Trump went on to tweet that trade talks with China are proceeding in a “congenial manner” and “there is absolutely no need to rush – as Tariffs are NOW being paid to the United States by China of 25% on 250 Billion Dollars worth of goods and products. These massive payments go directly the Treasury of the U.S….”
The president noted plans for the U.S. to level tariffs of 25% on the “remaining” $325 billion, pointing out that Washington sells Beijing about $100 billion worth of goods, and with the more than $100 billion in tariffs received, the U.S. will buy the agricultural products from U.S. farmers and send it as humanitarian assistance to nations in need. He also goes on to chide China for trying to “redo” the deal at the last minute after the terms already had been set.
China said Friday it “deeply regrets” the increased tariffs and will take the “necessary countermeasures,” without giving any details.
The increases are going into effect in the midst of talks between Chinese Vice Premier Liu He, U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin.
Thursday, U.S. and Chinese trade negotiators ended the first of two days of talks aimed at saving a trade deal even as President Donald Trump said the new “very heavy tariffs” on Chinese products” would go ahead.
The White House said late Thursday, “Ambassador Lighthizer and Secretary Mnuchin met with President Trump to discuss the ongoing trade negotiations with China. The Ambassador and Secretary then had a working dinner with Vice Premier Liu He, and agreed to continue discussions tomorrow morning at USTR.”
Liu He is leading the Chinese negotiating team for the talks which threatened to collapse after the Trump administration accused Beijing of backtracking.
“We were getting very close to a deal, then they started to renegotiate the deal,” said Trump earlier in the day at the White House.
“It was their idea to come back” and resume discussion ahead of the Friday deadline for additional tariffs, the president said.
Trump said he had also received “a beautiful letter” from Xi that expressed a sentiment of “let’s work together.”
Trump told reporters that he happens “to think tariffs for our country are very powerful,” in line with a view he has been expressing that such increased punitive taxes would be good for America’s economy.
Some economists, however, predict such tariffs would cut in half U.S. economic growth seen in the first quarter of this year.
The Trump administration hopes the new tariffs will force changes in China’s trade, subsidy and intellectual property practices.
The two sides have been unable to reach a deal due, in part, to differences over the enforcement of an agreement and a timeline for removing the tariffs.
Trump says despite being poised to impose the additional tariffs, he is not looking for a trade war with Beijing.
“I want to get along with China,” he told reporters Thursday.