Trump Wants China To Reach Trade Deal Or Suffer Later
Donald Trump issued a warning against China this past weekend. The president of the United States stated that he will impose harsher policy if the Chinese officials will still fail to reach a deal in the ongoing trade talks.
Likewise, should China still unable to sign a deal with the U.S. now, Trump said that "far worse" deal is waiting for the Chinese government should he win in the 2020 election and resume his post as the POTUS. The American president revealed his plan via a series of posts on Twitter.
"I think that China felt they were being beaten so badly in the recent negotiation that they may as well wait around for the next election, 2020, to see if they could get lucky & have a Democrat win - in which case they would continue to rip-off the USA for $500 Billion a year," he tweeted.
Trump added, "The only problem is that they know I am going to win (best economy & employment numbers in U.S. history, & much more), and the deal will become far worse for them if it has to be negotiated in my second term. Would be wise for them to act now, but love collecting big tariffs."
His warning came after the 2-day trade talks concluded on Friday and still, no deal was reached. The lead Chinese negotiators believe that Washington and Beijing should meet again for a new round of talks and proposed for the event to take place in China. No date has been set yet since it is uncertain if this meeting would be scheduled.
At any rate, the South China Morning Post reported that Donald Trump accused China of stretching out the time in the trade talks, probably to delay coming up with the deal until a new president is elected in the U.S. next year. The POTUS is clearly suggesting that China is delaying the negotiations in the hopes that when a new president sits in the White House, the trade policy may change and the Chinese may get more favorable treatment in the trade department.
On Friday, the U.S. government allowed higher tariffs on Chinese goods amounting to $200 million. It was raised from 10 to 25 percent and this is not all as Trump also ordered to start the paperwork on foisting levies at the same rate to the rest of China-made items worth over $300 billion. However, it was said that this tariff will not be in effect for a couple of months.
Meanwhile, there were people who applauded Donald Trump for his tough stance on the trade deal but some warned that the tariffs could badly hurt the U.S. economy too. As the New York Times reported, Larry Kudlow, Trump's chief economic adviser, revealed that the consumers in their country would also suffer from the escalating US-China trade war.
Contrary to what Trump had said, it is not only the Chinese who will be burdened by the increased tariff but both sides. Kudlow explained that China does not actually pay the tax but it will be a blow to their GDP due to the "diminishing export market."
"In fact, both sides will pay," Mr. Kudlow told Fox News. "Both sides will pay in these things."