US President Trump said in an interview broadcast on CNBC Friday (July 20) that he was "ready" to impose tariffs on $500 billion of Chinese exports to the United States, claiming that the United States "has been taken advantage of" for too long.
According to data provided by the Census Bureau, in 2017, the United States imported a total of 505.5 billion US dollars worth of goods from China, and exports to China only 122.9 billion yuan. What President Trump is referring to now is to levy a high tariff of 505.5 billion yuan.
In response to the threat that US President Trump will impose tariffs on US$500 billion in Chinese goods, Chinese Foreign Ministry spokesman Yan Shuang responded at a regular press conference held in Beijing on the 23rd: "For the US to insist on provoking a trade war, China is not willing to Playing, not afraid to fight, the position that has to be played when necessary is firm and clear. The Chinese side has already explained the relevant positions on many occasions. I will not start here. I will only say two sentences. First, China is not scared. China has the ability to have the confidence to safeguard the interests of the Chinese people. Second, we advise the US to remain calm and handle and resolve related issues through a rational attitude."
In addition, in response to Trump’s accusation of China’s manipulation of the RMB exchange rate, he said: “The RMB exchange rate is mainly determined by market supply and demand. There are both ups and downs, two-way interaction. At present, China’s economic fundamentals continue to improve, and the RMB exchange rate remains basically stable. It provides strong support. In addition, I would like to reiterate that China does not intend to stimulate exports through currency competitive devaluation. This is China’s consistent position."
Earlier this month, Trump imposed a 25% tariff on $34 billion in Chinese goods, and the next $16 billion in commodities. The Trump administration also announced a 10% taxation list for an additional $200 billion in Chinese goods, which is expected to enter into force as early as next month. As a tit-for-tat counterattack, China imposes tariffs on the same number of US imports.
The US Trade Representative Office is considering investigating China's intellectual property policy, especially the practice of forcing US companies operating in China to transfer technology. A spokesperson for the Chinese Ministry of Commerce said the allegations were "unfounded" and said that US trade penalties violated the rules of the World Trade Organization. With the stalemate in negotiations aimed at resolving Sino-US trade tensions, US Finance Minister Nuchin said that if China agrees to deepen structural reforms of the Chinese economy, the United States is only willing to return to the negotiating table.
The International Monetary Fund warned earlier that escalating trade tensions could undermine the global economic recovery. Maurice Obstfeld, chief economist at the organization, said that if threatened trade barriers become a reality, global output could be about 0.5% lower than expected by 2020. He also said that the US economy will be "extremely fragile" because in the tit-for-tat conflict, the US economy will become the focus of retaliation by its trading partners.
The Trump administration’s move to impose tariffs on imported steel and aluminum earlier this year also angered key allies. On July 19, automakers and automakers (such as Mexico) criticized the US government's investigation into whether auto imports pose a threat to national security.
In addition, an analysis by the International Monetary Fund shows that the risk that the United States imposes tariffs on foreign cars on the global economy is far greater than the tariffs that the Trump administration is considering for Chinese imports.