Tensions between China and United States escalated on Thursday after US President Donald Trump unveiled extensive new trade restrictions that would effectively block $60 billion in Chinese imports from entering the United States.As there are fears of a global trade war that could destabilize the global economy,Trump lamented the US’ multi-hundred billion dollar trade deficit with China and said the action would be “the first of many.”
“It’s going to make us a much stronger, much richer nation,” Trump said, adding that the retaliation could hit about $60 billion worth of Chinese goods.
“That’s really just a fraction of what we’re talking about,” he said, citing the large trade deficit that the U.S. runs with China.
Speaking at the White House, Donald Trump said the imposition of tariffs was part of an effort for fairness, noting that China imposes a 25% tariff on US cars while the US only has a 2.5% duty on Chinese cars. “They charge us, we charge the same thing,” said Trump.
“What you’ll see is that many of these areas are those where China has sought to acquire advantage through the unfair acquisition or forced technology transfer from U.S. companies with an aim toward establishing its own competitive advantage,” said Everett Eissenstat, deputy director of the White House National Economic Council said.
If China retaliates, companies such as Apple, Boeing, Intel and other multinationals in the Dow and S&P 500 will be suffering .
The president blamed China for the loss of 60,000 factories and 6 million jobs and also ordered Lighthizer to complain to the World Trade Organization about China’s discriminatory licensing practices for foreign companies, an effort U.S. officials hope will draw support from U.S. allies in Europe and Japan.