Trump satisfied with result of market tariffs increase regarding China

China threatens tariffs on $60 billion in US goods

Getty Images

China has said new duties will be applied only if Washington pulls the trigger on its new tariffs. "Likewise other countries. We are Winning, but must be strong!" "China is not delivering, OK?"

Larry Kudlow, the president's chief economic adviser, told Bloomberg TV that Trump is not afraid of dragging out the fight with China.

"Their economy's weak, their currency is weak, people are leaving the country".

"Really what we're looking to see is whatever actions are taken do not have the staying, negative fallout as the tariffs did in 2002", Paglia said, referring to tariffs President George W. Bush placed on imported steel.

President Donald Trump's trade war with China is entering its sixth month, and there are no signs it will end anytime soon.

If China carries through on its latest threat, it will be imposing some form of tariffs on almost all of the $130 billion in goods it imports from the U.S.

He also said China was "for the first time doing poorly against us".

April 2: China imposed tariffs between 15 percent and 25 percent on 128 US products worth a total of $3 billion.

Meanwhile, Chinese state TV said: "The White House's extreme pressure and blackmail are already clear to the worldwide community".

Earlier today, a Chinese foreign ministry spokesman called on Washington to "come to its senses" and settle the dispute.

The move comes after Trump asked United States trade officials to consider imposing a 25% tariff on $200bn of Chinese goods, up from the 10% level originally proposed last month, as the two countries attempt to reach an agreement on trade.

Last month, Trump threatened to impose tariffs on all goods imported from China.

Friday's retaliation from China suggests that tactic hasn't worked.

Beijing's earlier round of tariffs appeared created to minimize the effect on the Chinese economy by targeting soybeans, whiskey and other goods available from Brazil, Australia and other suppliers.

Chinese business' say the tariffs are not a major blow as they can easily find alternative suppliers from Europe and Australia.

The Commerce Department said on Friday the trade gap surged 7.3 per cent to $46.3 billion.

Yet while the Chinese public and private sectors invest in one another based on the principles of the cyclically prosperous market socialist model, the United States is now being forced to subsidise (aka pay) its own farmers whose industry has been partly stagnated during the early stages of the trade war on China.

China has already filed a complaint with the World Trade Organization about the US proposal for tariffs on $200 billion worth of goods. But billions of dollars in tariffs have already been imposed on imports and exports between the two countries. The United States slapped duties on $34 billion worth of Chinese goods, provoking a similar response from China.

"Every country on earth wants to take wealth out of the US, always to our detriment", Trump tweeted, "I say, as they come, Tax them".

"It's more proportionate", Tu said.

Talks with China and Canada, however, have remained very frosty, and Trump has promised to punish both economies if he doesn't get his way. On Friday, officials stepped in to cushion the yuan, which has been battered by trade tensions and was approaching the key level of seven to the dollar.

"They switched gear a bit because, I think, they realized that they have the weaker hand here in terms of their ability to retaliate, partly because they import far less from the USA than the US imports from China, but also [because] a portion of [goods] they import from China is, you know, high-tech that are quite hard to import from elsewhere", Julian Evans-Pritchard, senior China economist at Capital Economics told VOA. It will be September at the earliest before the USA decides whether to impose those tariffs. China has denied violating global trade norms. China's market declines weaken that nation's bargaining power in the escalating trade war, he added.

Johnny Depp's Biggie Smalls biopic gets shelved