The U.S. will raise tariffs Friday on $200 billion in Chinese imports from 10 percent to 25 percent, according to a memo from the U.S. trade representative on the U.S. Federal Register.
What Happened
Chinese diplomats returned to Washington last Friday with significant revisions to the latest drafted trade agreement, according to Reuters.
Beijing reversed sundry terms core to the U.S. position, including commitments on intellectual property, trade secrets, forced technology transfers, competition regulation, currency manipulation and financial services.
Why It’s Important
China’s amendments threaten to unravel months of progress. President Donald Trump seemed to attribute the retreat to a hope on the part of the Chinese of constructing a softer agreement with a future Democratic president.
The reason for the China pullback & attempted renegotiation of the Trade Deal is the sincere HOPE that they will be able to “negotiate” with Joe Biden or one of the very weak Democrats, and thereby continue to ripoff the United States (($500 Billion a year)) for years to come....
— Donald J. Trump (@realDonaldTrump) May 8, 2019
The uncertainty comes with great economic consequence. The tariffs are expected to hurt retailers and others with supply chains exposed to China.
What’s Next
China’s vice premier is slated to come to the U.S. to negotiate a trade agreement later this week.
....Guess what, that’s not going to happen! China has just informed us that they (Vice-Premier) are now coming to the U.S. to make a deal. We’ll see, but I am very happy with over $100 Billion a year in Tariffs filling U.S. coffers...great for U.S., not good for China!
— Donald J. Trump (@realDonaldTrump) May 8, 2019
Related Links:
Hitting A Wall: More Red Ink Appears Ready To Spill As New Tariffs Loom
Market Remains Shaken Over Tariff Threats Ahead Of U.S.-China Trade Talks
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