February 26, 2021

Trump rekindles the trade war days after the last meeting with China

The president of the United States, Donald Trump, again stirred up the commercial war with China with the imposition of new tariffs of 10% on Chinese imports valued at 300,000 million dollars from September 1, after concluding on Wednesday his last negotiating round in Shanghai.

"We thought we had an agreement with China three months ago, but unfortunately China has decided to renegotiate the agreement before signing," Trump said in a message on his Twitter account.

The ruler added that although the talks continue, his Government will begin to impose on September 1 "a small additional tariff of 10%" on the 300,000 million dollars of Chinese products that were not yet subject to additional tariffs.

In this way, all Chinese exports to the US would be taxed as of September, although at different levels, 10% and 25%.

"This does not include the 250,000 million dollars (in Chinese imports) to which a 25% tariff has already been applied," the president added.

The announcement was totally unexpected when it collided directly with what was notified this Wednesday, when the White House itself issued a statement in which it stressed that "the Chinese delegation confirmed its commitment to increase purchases of US agricultural exports."

The note from the presidential press office said that "the meetings (in Shanghai) were constructive" and noted that "negotiations on an executable trade agreement are expected to continue in Washington at the beginning of September."

The Secretary of the Treasury, Steven Mnuchin, and the Foreign Trade Representative, Robert Lighthizer, participated in the early week meetings in Shanghai; while Chinese Vice Premier Liu He and Commerce Minister Zhong Shan, who did not participate in the previous rounds, did so, considered part of the hard line of the Communist Party of China (CCP).

By justifying the imposition of the new tariffs, Trump said Thursday that China had pledged to buy agricultural products from the United States "in large quantities, but it did not."

He also added that his "friend", Chinese President Xi Jinping, had promised to stop the sale of fentanyl to the United States, and that neither has happened "and many Americans continue to die" because of that dangerous drug.

The financial markets reacted with sharp falls, and the Dow Jones of Industriales, the main indicator of Wall Street, registered a decrease of 1.8%, after having started the day with gains.

The commercial war between the USA and China, triggered by Trump's aggressive protectionism since he came to power in January 2017, reached its peak in May with the imposition of a 25% tariff on Chinese imports worth $ 250 billion, almost half of the total.

China responded to this with the application of similar levies to US $ 110,000 million in US imports.

At the end of June, Trump and Xi met in Japan in the framework of the G20 summit, and agreed to resume talks without additional measures, following several threats by the US president.

The dispute between the two largest world economies has consequences worldwide, and in its latest global growth forecasts presented last year the International Monetary Fund (IMF) lowered its projections of global expansion to 3.2% this year, one tenth less that in April, as a consequence of the "commercial tensions" between Washington and Beijing.

(tagsToTranslate) Trump (t) revives (t) commercial (t) after (t) China

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