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Robert Delaney

US President Donald Trump announced on Thursday that he would impose new tariffs on US$300 billion worth of Chinese imports after a high-level trade mission that, Trump said, produced too little in terms of concessions from Beijing.
US customs will impose “a small, additional” levy of 10 per cent on the imports, starting on September 1, he said.
“China agreed to buy agricultural product from the US in large quantities, but did not do so,” Trump wrote in a series of tweets.
“Additionally, my friend President Xi said that he would stop the sale of Fentanyl to the United States – this never happened, and many Americans continue to die!”

...buy agricultural product from the U.S. in large quantities, but did not do so. Additionally, my friend President Xi said that he would stop the sale of Fentanyl to the United States – this never happened, and many Americans continue to die! Trade talks are continuing, and...
— Donald J. Trump (@realDonaldTrump) August 1, 2019

Trump’s announcement breaks a ceasefire that had been in place since he met his Chinese counterpart, Xi Jinping, a month ago during the G20 summit in Osaka, Japan.
It also marks the biggest escalation in the 13-month trade war since the US leader announced in May, just ahead of bilateral talks in Washington, that 10 per cent tariffs on US$250 billion worth of goods would rise to 25 per cent.
Industry groups affected by the import tariffs weighed in quickly on Thursday, with the US Chamber of Commerce, National Retail Federation, Retail Industry Leaders Association (RILA) and the American Apparel and Footwear Association all condemning Trump’s move.




The action also rattled capital markets and oil prices. The S&P 500 stock index dived after the tariff announcement, erasing an earlier daily gain of more than 1 per cent and falling to a loss of the same magnitude, while oil prices fell by nearly 8 per cent.
The new tariff “is a direct hit on consumer products and family budgets, plain and simple”, RILA, which counts Apple and Nike as members, said in a statement.

“Tariffs are taxes on American consumers. And if these tariffs happen, American consumers will bear the brunt of these tactics via higher prices on everyday items like clothing, toys, home goods and electronics,” the association said.
“American families shouldn’t be a pawn in this trade war.”
Myron Brilliant, the US Chamber of Commerce’s executive vice-president and head of international affairs, said raising tariffs by 10 per cent on an additional US$300 billion worth of imports from China “will only inflict greater pain on American businesses, farmers, workers and consumers, and undermine an otherwise strong US economy”.
Mnuchin wanted to warn China of new tariffs, but Trump said no
Wendy Cutler, a former US trade negotiator, echoed that sentiment.
US-China trade talks “aren't getting any easier”, Cutler, who is now vice-president at the Asia Society Policy Institute, said in a tweet.
“Don't expect … China to sit by, the [US]$300b tariffs plus China's counter-retaliation will take a heavy toll on consumers, workers, businesses and farmers in the US.”

#US #China #TradeTalks aren't getting any easier. Don't expect the China to sit by, the $300b #tariffs plus China's counter-retaliation will take a heavy toll on consumers, workers, businesses and farmers in the US. @AP @PaulWisemanAP https://t.co/7lyfWxu9C2
— Wendy Cutler (@wendyscutler) August 1, 2019

However, speaking to reporters at the White House after his announcement, Trump asserted that China was bearing the brunt of the trade war.
China is “paying for these tariffs. We’re not”, Trump said, adding: “Until such time as there is a deal, we'll be taxing them”.
The latest twist in the trade war underscores the distance between Washington and Beijing.
Trump has repeatedly accused China of not doing enough to halt imports of fentanyl, a synthetic opioid that the US Centres for Disease Control and Prevention blamed for 18,000 fatal overdoses in 2016, the last year for which data is available.
US-China cross-border investments hit 5-year low as decoupling deepens
When Trump met Xi in Argentina in December, the Chinese president promised to tighten restrictions on the manufacture and sale of the drug.
As part of the curbs, all fentanyl-related substances were added to a supplementary list of controlled narcotic drugs and psychotropic substances with non-medical use.
State television broadcasts ahead of talks in Shanghai this week between Chinese Vice-Premier Liu He, US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin –the first since talks broke down in May – lauded China’s purchases of US agricultural goods as a sign of benevolence in the trade dispute.




The purchases were part of “unremitting efforts to show goodwill” ahead of the resumption of trade talks, as well as a bid to shift the focus away from the controversial issues of forced technology transfer and enforcement, according to state media.
After the talks, the US said it wanted further negotiations to result in “an enforceable trade deal”.
China’s statement did not mention enforcement, suggesting that this demand remains a stumbling block to a deal. China’s previous objections to US proposals on the issue led to the breakdown of talks in early May.
Asked by reporters whether the September 1 date for the new tariffs was meant to give the Chinese side a chance for Xi to “negotiate himself out of this”, Trump said no, adding: “The reason is, it takes a long time for the ships to come over. And it’s a period of time. So I'm giving him four – like a four-week period of time before the tariffs go on”.



The political risk consultancy Eurasia Group characterised Trump’s latest move as “a return to his pre-G20 approach to negotiations with China, attempting to build additional leverage over Beijing even as talks continue”.
“The threat is a serious gamble for Trump. It likely signals that he would prefer to reach a deal on his terms before the 2020 election, and is willing to use the tools at his disposal to build pressure on China to that end,” Eurasia’s China and Northeast Asia practice director, Michael Hirson, said in a research note.
“The (relatively) optimistic case for today’s move would be that Trump believes China is dragging its feet on two discrete issues – fentanyl and agricultural purchases – and that the tariff threat is meant to restart these actions,” Hirson said.
“That doesn’t mean Beijing will respond as he hopes; it would be extremely embarrassing for China to step up imports from the US under the threat of blackmail,” he added.


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Donald Trump

Donald Trump says US to hit US$300 billion worth of Chinese goods with 10 per cent tariff

US President Donald Trump speaking in Washington on Tuesday. Photo: Reuters

Customers and staff in a busy clothes shop - Image

China and US offer contrasting views on trade war talks, as Beijing confirms agricultural purchases underway

The top trade negotiators from the United States and China shake hands as the two sides convened for their first face-to-face talks since a dramatic collapse in May. Photo: AP

Workers load goods for export onto a crane at a port in Lianyungang, Jiangsu province, China June 7, 2019. Picture taken June 7, 2019. REUTERS/Stringer ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. CHINA OUT.

A farmer harvests soybeans in Maryland, United States. A Chinese government statement on Thursday confirmed that agricultural purchases have resumed. Photo: AFP

Steven Mnuchin wanted to warn China of new tariffs, but Donald Trump said no

US Treasury Secretary Steven Mnuchin. Photo: AP

REFILE - CORRECTING NAME AND REMOVING POSITIONING U.S. Trade Representative Robert Lighthizer gestures as he chats with Chinese Vice Premier Liu He, while Treasury Secretary Steven Mnuchin looks on, after posing for a family photo at the Xijiao Conference Center in Shanghai, China, July 31, 2019. Ng Han Guan/Pool via REUTERS

US President Donald Trump speaks to members of the media on the South Lawn of the White House on Tuesday. Photo: Bloomberg

US-China cross-border investments hit 5-year low as decoupling deepens amid trade war

The trade war has propelled the decoupling of the US and Chinese economies. Photo: Reuters

A person looks at the Grindr app in the App Store on a phone in Los Angeles on March 27, 2019. - A Chinese firm has been ordered by American national security officials to sell popular gay dating app Grindr, The Wall Street Journal reported on March 27. (Photo by Chris DELMAS / AFP)

FDI graphic

US-China trade war brings Hong Kong’s economic expansion to near standstill

The impact of anti-government protests could well be felt in the third quarter. Photo: AP

People are seen at a popular tourist spot on Victoria Harbour in Hong Kong on July 30, 2019. (Photo by ISAAC LAWRENCE / AFP)

Donald Trump said his tariffs on Chinese imports would bring factory jobs back to the US, but that’s not happening

Illustration: Brian Wang

U.S. President-elect Donald Trump speaks during an event at Carrier Corp. in Indianapolis, Indiana, U.S., on Thursday, Dec. 1, 2016. Trump said he called the top executive of United Technologies Corp. shortly after his election and told him not to close a Carrier factory in Indianapolis that became a symbol of the Republican's outsider campaign for the White House. Photographer: Daniel Acker/Bloomberg

(FILES) In this file photo taken on June 3, 2019 Apple's new Mac Pro sits on display in the showroom during Apple's Worldwide Developer Conference (WWDC) in San Jose, California. - President Donald Trump said on July 26, 2019 that Apple would face tariffs for components of its Mac Pro computers which are expected to be manufactured in China. Trump's comments came after reports the US tech giant was seeking an exemption from tariffs for the high-end computer, which in the past had been made in the United States. Apple is reportedly now shifting production to China. (Photo by Brittany Hosea-Small / AFP)

China's President Xi Jinping (R) greets US President Donald Trump before a bilateral meeting on the sidelines of the G20 Summit in Osaka on June 29, 2019. (Photo by Brendan Smialowski / AFP)

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American president’s announcement comes after the latest round of trade talks between the world’s two largest economies
Punitive action marks the biggest escalation in the 13-month trade war since May



The president’s announcement comes after the latest round of trade talks between the world’s two largest economies, marking the biggest escalation in the trade war since May.


Donald Trump says US to hit US$300 billion worth of Chinese goods with 10 per cent tariff

American president’s announcement comes after the latest round of trade talks between the world’s two largest economies Punitive action marks the biggest escalation in the 13-month trade war since May

American president’s announcement comes after the latest round of trade talks between the world’s two largest economies

Punitive action marks the biggest escalation in the 13-month trade war since May