The anticipation of Trump’s new tariff plan for China caused the U.S. dollar to slip on Monday, though the President has said he won’t make his official announcement until the markets close. Trump is expected to impose around $200 billion in tariffs on Chinese goods.
A list released in July suggests that Trump will levy tariffs on tech products, circuit boards, electronics and other items coming out of China. This would encompass Apple products, including iPhones, along with many other popular consumer electronic products.
Almost half of all Chinese imports into the U.S. will be affected by the newest round of tariffs, in addition to the already $50 billion in tariffs Trump imposed on Chinese products earlier this year. Trump is using this as a tactic to get China to change their trade practices, which Trump says ultimately hurt American businesses.
“It will be a lot of money coming into the coffers of the United States of America. A lot of money coming in, but you’ll be seeing what we’re doing right after close of business today,” Trump said early Monday.
Officials from both countries are scheduled to meet in Washington, D.C. later this month to discuss trade deals. But if these new tariffs are imposed, the meeting could be canceled.
The current senior deputy to Chinese Vice Premier Liu He, Yang Weimin, says that China will not negotiate while under pressure.
“We are ready to negotiate and talk to China any time they are ready for serious and substantive negotiations…We are ready to have that discussion anytime, as long as it’s going to be a serious discussion,” said Larry Kudlow, chair of the National Economic Council.
Trump has threatened to tax all Chinese goods if current trade practices are not changed.
Tariffs have put the U.S. in a very strong bargaining position, with Billions of Dollars, and Jobs, flowing into our Country – and yet cost increases have thus far been almost unnoticeable. If countries will not make fair deals with us, they will be “Tariffed!”
— Donald J. Trump (@realDonaldTrump) September 17, 2018
“Tariffs have put the U.S. in a very strong bargaining position, with Billions of Dollars and Jobs, flowing into our Country – and yet cost increase have thus far been almost unnoticeable. If countries will not make fair deals with us, they will be ‘Tariffed!'” Trump said in a Monday tweet.
Economic data does not support his words, however. <em>The New York Times</em> reports that steel prices are up more than 10 percent following the first round of tariffs. After Trump imposed tariffs on imported washing machines, prices on these appliances jumped by 20 percent. Economists predict that the effects will become even more widespread should Trump impose more tariffs on Chinese products, and that new tariffs will ultimately hurt American consumers.
China has stated that they will take action should Trump carry out his plan.
This latest round of tariffs is another shot in the trade war Trump promised to ignite from the campaign trail.