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Saturday 24 auguSt 2019

Trump raises tariffs on Chinese goods as trade war escalates

Continued from Front Representative also said
existing tariffs on another
Trump’s move came after $250 billion in Chinese im-
Beijing announced Friday ports would go from 25%
morning that it had raised to 30% on Oct. 1 after re-
taxes on U.S. products. He ceiving feedback from the
huddled with advisers, firing public.
off tweets that attacked The impact could be
China and the Fed. And sweeping for consumers.
he mockingly attributed a “With each percentage
drop of 573 points to the point added to the tariff
withdrawal from the Dem- hikes, it becomes more and
ocratic presidential race of more difficult for importers
a marginal candidate. The not to pass the costs on to
Dow Jones average even- the U.S. consumer,” said
tually closed down 623 Wendy Cutler, a former
points. U.S. trade negotiator now
The president attacked the at the Asia Society Policy
Fed for not lowering rates Institute. “And this is not
at an informal gathering to mention the uncertainty
in Jackson Hole, Wyoming, that these increases con-
where no such action tribute to the overall busi-
was under consideration. ness environment.”
Powell, speaking to cen- Trump acted hours after In this May 9, 2019, file photo a General Electric washing machine with a label advertising it was
tral bankers, gave vague Beijing said it would hike made in America is displayed in retail stores in Cranberry Township, Pa.
assurances that the Fed tariffs on $75 billion in U.S. Associated Press
would act to sustain the imports, a move that some cording to two people fa- tional Retail Federation. ny that imports from China,
nation’s economic expan- economists fear could tip miliar with the meeting who “The administration’s ap- said Trump’s demand to
sion, but noted that the a fragile global economy spoke to AP on condition of proach clearly isn’t work- American companies was
central bank had limited into recession. anonymity because they ing, and the answer isn’t outrageous.
tools to deal with damage The president appeared were not authorized to dis- more taxes on American It was an “unprecedented
from the trade dispute. caught off-guard by Chi- close closed-door conver- businesses and consumers. statement for a president
Trump said he would be na’s tariff increase, and sations. Where does this end?” to make to private business
raising planned tariffs on was angry when he gath- Administration officials, in- If Trump goes ahead with all when there is no national
$300 billion in Chinese ered with his trade team cluding U.S. Trade Repre- the tariffs he’s announced, security issue involved,” he
goods from 10% to 15%. in the Oval Office before sentative Robert Lighthizer they would cover just about said.
The Office of the U.S. Trade departing for France, ac- and adviser Peter Navarro everything China ships to The 13-month-long trade
discussed potential retal- the United States. feud between the U.S.
iatory options. Treasury China, for its part, slapped and China has been rat-
Secretary Steve Mnuchin, new tariffs of 5% and 10% on tling financial markets, dis-
returning from vacation, $75 billion of U.S. products rupting international trade
joined by phone. in retaliation. Like Trump’s, and weakening prospects
Earlier Friday, the president the Chinese tariffs will be for worldwide economic
said he “hereby ordered” imposed in two batches — growth.
U.S. companies to seek al- first on Sept. 1 and then on Washington accuses China
ternatives to doing business Dec. 15. of using predatory tactics
in China. The White House China will also go ahead — including outright theft
did not cite what authority with previously postponed of U.S. trade secrets — in
the president could use to import duties on U.S.-made an aggressive drive to turn
force private businesses to autos and auto parts, the Fi- itself into a world leader
change their practices. nance Ministry announced. in cutting-edge technolo-
Trump’s latest escalation Trump tweets on Friday gies such as artificial intel-
will impose a burden on included one declaring: ligence and electric cars.
many American house- “Our great American com- Twelve rounds of talks have
holds. Even before he an- panies are hereby ordered failed to break the impasse,
nounced an increase Fri- to immediately start look- though more negotiations
day, J.P. Morgan had esti- ing for an alternative to are expected next month.
mated that Trump’s tariffs China, including bringing... Chinese leaders have of-
would cost the average your companies HOME fered to alter details of their
household roughly $1,000 a and making your products policies but are resisting
year if he proceeded with in the USA.” any deal that would require
his threats. French, at the National Re- them to give up their aspi-
Businesses large and small tail Federation, said it was rations to become a tech-
joined in a chorus of op- “unrealistic for American nological powerhouse.
position to the intensifying retailers to move out of The two countries are also
hostilities. the world’s second largest deadlocked over how to
“It’s impossible for business- economy ... Our presence enforce any agreement.
es to plan for the future in in China allows us to reach China’s announced tariff
this type of environment,” Chinese customers and de- hikes — and Trump’s re-
said David French, senior velop overseas markets.” sponse — is the latest sign
vice president of govern- Jay Foreman, CEO of Basic that both countries are dig-
ment relations at the Na- Fun!, a Florida toy compa- ging in.q