Business Maverick

Business Maverick

US Threatens Substantially More Tariffs If No China Deal

MANHATTAN, NY. - NOVEMBER 12, 2019:United States President Donald J. Trump deliver a speech on trade and economic policy during The Economic Club of New York at The New York Hilton Midtown in the Manhattan borough of New York, U.S., on Tuesday, Nov. 12, 2019. Photographer: Demetrius Freeman/Bloomberg

President Donald Trump said the US will increase tariffs on China in case the first step of a broader agreement isn’t reached.

“If we don’t make a deal, we’re going to substantially raise those tariffs,” he said Tuesday in a speech to the Economic Club of New York. “They’re going to be raised very substantially. And that’s going to be true for other countries that mistreat us too.”

China is “dying” to make a trade deal with the U.S., Trump said, adding that he’d only sign it if it’s good for American companies and workers. Still, “we’re close — a significant phase one deal could happen, could happen soon.”

Trump and Chinese President Xi Jinping had planned to sign “phase one” of the deal at an international conference this month in Chile that was canceled because of social unrest in that country.

Shanghai stocks opened lower and the yuan was weaker against the dollar on Wednesday. Other Asian markets also declined. Hong Kong’s benchmark declined 2% as the city faced heightened tensions.

A new site for the signing hasn’t been announced. U.S. locations for the meeting that had been proposed by the White House have been ruled out, according to a person familiar with the matter. Locations in Asia and Europe are now being considered instead, the person said, asking not to be identified because the discussions aren’t public.

Trump reiterated complaints about China’s ascendance in the global economy. “Nobody’s cheated better than China,” he said. “The theft of American jobs and American wealth is over.”

U.S. stocks have rallied to records in recent days partly on optimism that tensions are cooling in an 18-month dispute involving tariffs on some $500 billion in trade between the world’s two largest economies. The S&P 500 Index was up about 0.3% as Trump delivered his remarks.

U.S. trade with China tumbled in September amid intensifying standoff

The economic stakes of a prolonged trade war are rising for both countries.

China’s exports and imports continued to contract in October, though slightly less than forecast by economists. The nation’s trade surplus with the U.S. widened in the month to $26.4 billion — heading in the opposite direction from the narrowing that Trump has called for to balance the countries’ trading relationship.

Read more:
Gallery

Please peer review 3 community comments before your comment can be posted

Make your taxes work for you

Donate to Daily Maverick’s non-profit arm, the Scorpio Investigative Unit, by 29 February 2024 and you’ll qualify for a tax break.

We issue Section 18A tax certificates for all donations made to Daily Maverick. These can be presented to SARS for tax relief.

Make your donation today

Support Daily Maverick→
Payment options

Daily Maverick The Gathering 2024 banner

Daily Maverick has secured an esteemed speaker line-up...

to help make sense of Elections 2024.

Trevor Manuel, Prof Thuli Madonsela and Minister Ronald Lamola are among the latest panellists confirmed for Daily Maverick The Gathering Twenty Twenty-Four.

Join us, on Thurs 14 March 2024 at CTICC Cape Town or online wherever you are, for an event that will put the election in perspective.

Become a Maverick Insider

This could have been a paywall

On another site this would have been a paywall. Maverick Insider keeps our content free for all.

Become an Insider