After announcing a string of tough trade measures against China, US President Donald Trump has said that Beijing would no longer have a “free reign” like it had been having for many years, which resulted in a massive American trade deficit with it.
A day after he initiated a series of tough actions against “unfair” Chinese trade practices, inviting retaliation by Beijing, Trump exuded confidence that the steps would end up with China fairly treating America.
“China is going to end up treating us fairly. For many years, they had free reign; they don’t have free reign anymore. We’re very friendly with China. We have great relationships with China. And, look, it’s time. It’s time,” Trump told reporters yesterday at a White House news conference.
“Last year, we lost USD 500 billion on trade with China. We can’t let that happen,” he said.
The White House has also said that America’s massive trade deficit with China is estimated to have resulted in about two million job losses in the US.
Trump imposed tariffs on about USD 60 billion worth of Chinese imports to punish the country for its “unfair” seizure of American intellectual property, a move that could escalate the already tense trade relations between the world’s two biggest economies.
In a retaliatory move, China unveiled plans yesterday to impose higher tariffs on USD 3 billion worth of American goods including pork and pipes in retaliation to US tariffs on steel and aluminium imports from Beijing.
Meanwhile, The Wall Street Journal today said China is to blame, and not Trump, if there happens to be a trade war between it and the US.
“If there’s a trade war between the US and China, don’t blame Donald Trump: China started it long before he became president,” the daily wrote.
“Even free traders and internationalists agree China’s predatory trade practices, which include forcing US businesses to transfer valuable technology to Chinese firms and restricting access to Chinese markets, are undermining both its partners and the trading system,” it said.moneycontrol