President Donald Trump inched closer to an all-out trade war by unveiling plans Monday to impose 10 percent tariffs on an additional $200 billion worth of Chinese goods if Beijing doesn’t bend to US demands.
With the world’s two largest economies on the brink of a full-fledged confrontation, spooking markets and worrying business leaders, Trump said he was pushing forward with fresh punitive measures over Beijing’s “unacceptable” move to raise its own tariffs.
“Further action must be taken to encourage China to change its unfair practices, open its market to United States goods and accept a more balanced trade relationship with the United States,” Trump said in a statement.
The US leader warned he would go even further, with punitive measures on an extra $200 billion of Chinese goods — for a possible total of $450 billion of goods, or most Chinese imports — “if China increases its tariffs yet again.”
Last week, Trump announced 25 percent tariffs on $50 billion in Chinese imports, prompting Beijing to follow suit with matching duties on American imported goods.
Trump had already warned at the time of “additional tariffs” should Beijing hit back with tit-for-tat duties on American goods.
“The trade relationship between the United States and China must be much more equitable,” the president said in explaining his decision.
“I have an excellent relationship with President Xi (Jinping), and we will continue working together on many issues. But the United States will no longer be taken advantage of on trade by China and other countries in the world.”
Trump moved forward with measures after months of sometimes fraught shuttle diplomacy in which Chinese offers to purchase more American goods failed to assuage his grievances over the soaring trade imbalance and China’s aggressive industrial development policies.
China had offered to ramp up purchases of American goods by only $70 billion to help cut the yawning trade imbalance with the United States, whereas Trump had demanded a $200 billion deficit cut.