Trump defends China tariffs and claims 'great patriot farmers' will reap benefits

Trump defends China tariffs and claims 'great patriot farmers' will reap benefits

The U.S. and other trading partners say such efforts violate Beijing's free-trade commitments.

Beijing's retaliation will infuriate the US President, who had warned his Chinese counterpart against raising tariffs.

"We take in billions of dollars, it's a very positive step, I love the position we're in".

President Trump on Tuesday said that a deal with China will happen "when the time is right", and only after the allowed to "make up" ground he says was lost after the formation of the World Trade Organization.

Portman also said he believes it's unlikely that an agreement will be reached until Trump sits down with China's President Xi Jinping at the upcoming G20 meeting.

Trump last week also ordered US Trade Representative Robert Lighthizer to begin imposing tariffs on all remaining imports from China, a move that would affect an additional $300 billion worth of goods.

China announced on Monday it would raise tariffs on US$60 billion (S$82 billion) in U.S. exports by next month, responding in kind to President Donald Trump's decision last week to hike duties on hundreds of billions of dollars in Chinese merchandise.

By comparison, China only imported $120 billion of United States goods into the country, imposing $110 billion in tariffs for that period according to BBC Research.

Trump's advice that American customers can buy alternatives in domestic market or from non-tariffed countries is thus unrealistic in the era of global integration.

In other words, our dynamic, growing, low-inflation economy can handle a trade war with China. The Dow Jones industrial average was down more than 600 points, or close to 2.5 per cent, in midafternoon trading, while the Standard & Poor's 500 also sank almost 2.5 per cent.

That move underscored worries about the economic impact of a trade war - a sustained inversion of that part of the yield curve has preceded every US recession in the past 50 years.

The release followed Beijing's announcement Monday of tariffs of up to 25% on $60 billion of American imports in their spiraling dispute over Chinese technology ambitions and other irritants.

China on Monday announced tariff increases on US$60b of United States imports.

If China stops buying American farm products because of tariffs, Trump said, farmers will be compensated.

The ruling Communist Party's official People's Daily said in a commentary that the United States needed to "give it a rest" with the complaints that it was losing out to China in the trade relationship because China was a hugely profitable market for USA companies. A large number of them are chemicals, food (including live eels), and industrial parts.

"This is only too belatedly they've accepted the fact that it is a trade war", he said.

The next US election is 18 months away.

"Investors are increasingly anxious an anticipated second-half profit rebound may now evaporate as President (Donald) Trump's threat to tariff the remaining US$325 billion in Chinese imports would disproportionately target consumer products like iPhones, thereby posing a greater threat to the consumption-driven U.S. economy", said Alec Young, managing director of global markets research at FTSE Russell.

"China should not retaliate-will only get worse", he said on Twitter.

So it has been with President Donald Trump's trade war.

-Kansas City Fed President Esther George and Richmond Fed President Thomas Barkin make appearances. That would raise the cost of an iPhone XS from $1,000 to $1,142, potentially slowing sales if consumers decide to hold off on upgrading to a new phone due to the higher costs.

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