The Times view on China-US relations: Bad Trade


But not only is this false in a literal sense, it's figuratively misleading, too. The annual spending of average American family of four will see a rise of 767 USA dollars on household goods if a 25 percent tariff is imposed on 250 billion US dollars in Chinese goods, reducing American employment by 934,000.

Trump had ordered the new tariffs, saying China "broke the deal" by reneging on earlier commitments made during months of negotiations.

The president has been using tariffs like a cudgel to force China to the negotiating table. Before voicing support for Trump's 2020 election campaign, American citizens should think twice - who on earth is paying for their president's tariffs?

"I have a feeling it's going to be very successful", he said.

The higher tariffs from the US and China's response that it would take "necessary countermeasures" rattled investors Friday who had been hoping for a quick resolution to the dispute.

An additional $325 billion of Chinese goods are in line for tariffs if Trump decides to impose them. China has the resolution, courage, and confidence to rise to all sorts of challenges, they said. Before World War II, it was a way for the federal government to raise money.

The question of who pays that 25 percent depends upon the circumstances.

When a tariff is imposed, the importer pays the tariff and generally passes it along. Instead, he has continually insisted that these tariffs effectively function like a direct tax on Chinese companies.

A tariff is defined as a tax on imports from other countries. The targeted goods include consumer products like luggage, backpacks, bamboo furniture, etc.

The retaliation measure came three days after the U.S. moved to increase tariffs on US$200 billion worth of Chinese goods from 10% to 25% as of May 10.

China's revised target list on Monday still left out products such as crude oil and large aircraft.

Bank of America Corp. analysts warn the U.S. S&P 500 could fall by 5 percent if the brinkmanship continues, with a further escalation of tariffs in the near term resulting in a potentially 10 percent decline. GoPro, for instance, announced in December it was moving part of its supply chain out of China.

The damage to the booming American economy is bound to be far less than estimated, however.

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There are, however, scenarios in which the Chinese might pay indirectly for the tariffs.

"It's clear that there is a lot of nervousness around the U.S".

The Chinese might also lose out as US importers look elsewhere for the products.

U.S. President Donald Trump, right, listens to a speech by Chinese President Xi Jinping during a business event at the Great Hall of the People in Beijing, Thursday, Nov. 9, 2017. Trump has demonstrated again and again that he is incapable of understanding the consequences of tariffs. This means while Chinese customers can easily find alternatives to American goods, American customers are heavily relying on Chinese products.

Kudlow was considerably more measured on Fox News Sunday.

Without access to cheaper imports, their ability to grow their businesses-and perhaps even to survive-is hindered. Moreover, American producers had responded to the reduction in Chinese competition by raising their prices.

The rising prices, without suspense, have fallen on ordinary American families.

Still, Trump tweeted that the "in a much better position now" than if a deal had been reached, but still stressed that "China wants a deal!"

"Further trade talks can not remedy the sharply increased uncertainty over Chinese and regional growth", Mizuho Bank said in a report.

The latest bullets in the U.S.

But both sides have expressed willingness to come together and make a trade deal to cool the escalating trade war between the two superpowers.

President Donald Trump listens to a question from the media during a meeting in the Oval Office on May 13.

Shares retreated in Asia on Monday after trade talks between the US and China wrapped up Friday without an agreement.