In only a short time since President Donald Trump claimed he secured peace with the Korean peninsula, he raised the ire of their nearby neighbors, the Chinese. He did so by indicating that he would be giving the green-light to the U.S. imposing tariffs on $50 billion of Chinese products, reports the Wall Street Journal.
The president started the firestorm by stating that the United States would no longer put up with being deprived of intellectual and technological property through China’s “unfair economic practices.” Beijing immediately responded to the stiff 25 percent tariffs on their goods, threatening to respond in kind.
Beijing’s response to the comments was immediate, and they indicated that they would be imposing tariffs of their own against U.S. exports of pork and soybeans, a move that would ultimately hurt farmers in the United States.
China’s Commerce Ministry gave a statement Friday, saying that China would retaliate to U.S. tariffs with “equal scale, equal intensity, and all the consensus the two sides reached earlier will lose effect.”
Meanwhile, in a move that was sure to ratchet up the trade war between the two countries, Trump responded to the threat by email, writing that the U.S. would impose more tariffs on China if they followed through on their threats.
The recent bitter trade dispute between China and the United States echoed a recent nasty clash between the United States and Canada after the G7 summit.
As the Inquisitr reported, Canadian Prime Minister Justin Trudeau left the summit and told the press that Canada would not be “pushed around.” Much like China did, he said that they would retaliate against United States tariffs by imposing their own.
One key point at the summit that led to escalation between the U.S. and Canada was because of what Canada felt were “illegal and unjustified” metal tariffs that the U.S. would be imposing on them.
Canada said they would be imposing $12.8 billion in tariffs in return on U.S. goods on July 1 (Canada Day) if the U.S. followed through with the “ridiculous” tariffs.
The president fired back at Canada’s remarks on that matter June 8 on Twitter by writing that Canada already charges a 270 percent tariff on dairy products.
He said during the G7 summit that the United States desired a quick end to trade practices, and that the country would no longer be the “piggy bank” for the world to rob. He said the Canadian tariff also hurts the nation’s dairy farmers.
Many of Trump’s constituents are in favor of tariffs and limiting globalization, claiming the move will create U.S. jobs. However, the ripple effect if this happens may have far-reaching consequences, reports Bloomberg.
The threat of a full blown trade war between China and the US is not that far-fetched given the mandate by the US population to President Donal Trump of perceived saving of jobs within the US economy and boosting of the manufacturing sector. pic.twitter.com/xPHxQpPq1K
— 27four Investment Managers (@27four) May 23, 2018
Although it isn’t known when the tariffs will be imposed by the United States, the looming threat of a trade war between the United States and China is making some of those in Trump’s own party nervous.
Some Republicans are critical of the president’s plan to impose metal tariffs, and still others in the party fearing trade war fallout are hotly debating whether they should limit Trump’s authority regarding trade policy, reports The Hill.