U.S. President Donald Trump has warned China to be cautious about its threat of retaliating against the United States’ move to hike tariffs charged on all imports from the country.
The U.S. imposed new tariffs on Chinese imports last week, even as trade talks held in Washington failed to signal an improvement in the tension between the two powerhouses.
On Monday, Trump warned that China risked being “hurt very badly” should they fail to make a deal.
According to the U.S. president, China had no reason to retaliate as the tariffs that take effect today will be paid for by the U.S. consumer. He said that things could “only get worse.”
Trump also tweeted that tariffs can be evaded (by the U.S. consumers) if manufacturers moved their production from China and set up operations in other countries.
The new tariffs announced by Trump-related to $200 billion worth of goods from China and were to be increased from 10% to 25% – which they did after a deadline set for Friday passed.
Other than that, the U.S. president also asked his Trade Representative Robert Lighthizer to begin plans towards imposing tariffs on more goods from China. The new tariffs would target a further $300 billion in imports from China, effectively imposing a duty on all goods from the Chinese market.
Meanwhile, Trump has maintained that China reneged on a trade deal that had ostensibly been negotiated between the two countries. he, therefore, threatened Beijing, noting that the country would suffer more economic strife should the current impasse in trade talks persist.
One of his takes was that China risked losing businesses to other, which would leave in huge numbers.
“Too expensive to buy in China… You had a great deal, almost completed, [and] you backed out!” Trump said.
There appears to be a deadlock between the United States and China in terms of how the trade talks proceed. On Sunday, Washington told Beijing that the U.S. will not accept anything other than tangible changes related to Chinese trade laws. But Beijing does not see it that way and has said that it will not accept anything that would hurt its interests.