Trump's Warning: More Tariffs Against China; Beijing: We Will Retaliate

The President of the United States has threatened to impose a new 10 percent tariff on $200 billion worth of Chinese goods. In response, China has threatened to take 'severe countermeasures.' In a statement released by Donald Trump on Monday, June 18, he asked Robert Lighthizer, the U.S. Trade Representative, to prepare a list of Chinese goods that could be subject to the new tariffs. The U.S. President claims that this action is a reciprocal response to China's increase of tariffs on $50 billion worth of U.S. imports. China's action was itself a reaction to a similar move by Washington. On June 14, Trump imposed a 25 percent tariff on $50 billion worth of imports from China and stated, 'If China takes retaliatory action and imposes new tariffs on U.S. goods, services, or agricultural products... the United States will respond with even higher tariffs.' In response, China announced it would impose a 25 percent tariff on over 650 U.S. imports worth $50 billion. Now, Trump says, 'After the legal process is completed, and if China does not change its approach, and if it insists on implementing the tariffs it has just announced, the new tariffs [from the U.S.] will be enforced.' According to Reuters, Lighthizer has also stated that his office is preparing a list of new tariffs, but he did not specify when this list would be made public. Beijing: We Will Retaliate. On Tuesday morning, June 19, in response to the recent statements from the U.S. President, Beijing described them as 'extortion' and stated it would take 'severe countermeasures.' The Chinese Ministry of Commerce, without providing details, stated it is ready to 'support the interests of the Chinese people and businesses': 'If the U.S. publishes its desired list, China will have no choice but to retaliate strongly and reciprocally, both qualitatively and quantitatively.' Chinese state media have also recently criticized U.S. economic policies. An editorial in the 'Global Times' states that Trump's policies have created 'two different images of two countries: one that challenges the foundation of global trade with sudden attacks, and the other that has no choice but to prepare for a trade war.' 'China Daily' also states that despite U.S. criticisms of relations with other countries, the massive investments of American companies in China and other countries, and their income and expenditures have had very positive effects on that country's economic surplus. On the other hand, U.S. Secretary of State Mike Pompeo stated that 'the recent remarks by Chinese officials for more openness and globalization are a joke.' Pompeo added, 'Let's be clear: the [Chinese] government has the largest looting economy that currently operates against other countries in the world.' Recent actions by Washington and Beijing have fueled concerns about the occurrence of a 'trade war.' Donald Trump has explicitly criticized what he calls China's 'unfair' trade relations as well as those of European countries, Canada, and other Washington allies. Regarding China, the United States is concerned about its trade policies, access for American companies to its market, and the $375 billion trade deficit between the two sides. In response, Beijing states it does not wish to enter a 'trade war,' but 'is not afraid of it either.'