Trump slaps tariffs on Chinese imports, sparking fears of global trade war
- 6 years ago
President Trump has signed a memorandum paving the way for sweeping tariffs on Chinese goods.
Thursday's move increases the prospect of a damaging trade war between the world's two biggest economies.
For more let's turn to our Ro Aram, who has been following the story….
Aram… Trump has long had his crosshairs pointed at China and the additional duties could be worth up to 60 billion dollars…
What did he have to say?
Well Semin… President Trump accused China of what he called years of intellectual property theft and Chinese pressure on American companies to hand it over.
He also reiterated his concerns over the growing trade deficit between the two countries.
"But we have a trade deficit, depending on the way you calculate it, of 504 billion dollars. Now some people would say it's really 375 billion dollars. Many different ways of looking at it but any way you look at it, it is the largest deficit of any country in the history of our world. It's out of control."
He went on to say that the punitive tariffs would benefit the U.S., adding that every trade deal had to be reciprocal.
"And frankly, it's going to make us a much stronger, much richer nation. The word is reciprocal. That's the word I want everyone to remember…… If they charge us, we charge them the same thing. That's the say it's got to be. That's not the way its been for many, many years. For decades, it has not been that way."
Now Aram…. China has already said it will retaliate, accusing the U.S. of abusing global trade rules.
Will this be the start of a global trade war?
Well only time will tell Semin, but there are parts of the memorandum that are not as threatening as they seem, such as not targeting Chinese imports right away.
The terms include allowing for a consultation period.
The proposed target list has up to 13-hundred products, but during this consultation period, lobbyists and legislators will get a chance to slim down that number down.
But Trump did say that Thursday's memorandum was the first of many, which further raises the prospect of a global trade war.
In addition to the tariffs, the Trump administration also plans to restrict new Chinese investments in America and take action against China at the World Trade Organization for what it calls unfair trade practices.
Back to you Semin…
Thursday's move increases the prospect of a damaging trade war between the world's two biggest economies.
For more let's turn to our Ro Aram, who has been following the story….
Aram… Trump has long had his crosshairs pointed at China and the additional duties could be worth up to 60 billion dollars…
What did he have to say?
Well Semin… President Trump accused China of what he called years of intellectual property theft and Chinese pressure on American companies to hand it over.
He also reiterated his concerns over the growing trade deficit between the two countries.
"But we have a trade deficit, depending on the way you calculate it, of 504 billion dollars. Now some people would say it's really 375 billion dollars. Many different ways of looking at it but any way you look at it, it is the largest deficit of any country in the history of our world. It's out of control."
He went on to say that the punitive tariffs would benefit the U.S., adding that every trade deal had to be reciprocal.
"And frankly, it's going to make us a much stronger, much richer nation. The word is reciprocal. That's the word I want everyone to remember…… If they charge us, we charge them the same thing. That's the say it's got to be. That's not the way its been for many, many years. For decades, it has not been that way."
Now Aram…. China has already said it will retaliate, accusing the U.S. of abusing global trade rules.
Will this be the start of a global trade war?
Well only time will tell Semin, but there are parts of the memorandum that are not as threatening as they seem, such as not targeting Chinese imports right away.
The terms include allowing for a consultation period.
The proposed target list has up to 13-hundred products, but during this consultation period, lobbyists and legislators will get a chance to slim down that number down.
But Trump did say that Thursday's memorandum was the first of many, which further raises the prospect of a global trade war.
In addition to the tariffs, the Trump administration also plans to restrict new Chinese investments in America and take action against China at the World Trade Organization for what it calls unfair trade practices.
Back to you Semin…