Donald Trump says not going to allow trade deficit with China any more

By: |
Washington | May 06, 2019 10:38 PM

These payments are partially responsible for America's great economic results, he said.

donald trump, china us, US china trade, trade war, tarrif war, xi xinpingUS President Donald Trump (REUTERS/Kevin Lamarque)

President Donald Trump on Monday said the US has been losing USD 500 billion per year on trade with China and he will no longer allow that to happen any more.

“The United States has been losing, for many years, 600 to 800 Billion Dollars a year on Trade. With China we lose 500 Billion Dollars. Sorry, we’re not going to be doing that anymore!” Trump tweeted.

The tweet, a follow up of a series of tweets a day earlier, is indicative of the fact that Trump does not want to wait any longer on trade negotiations with China and he is increasingly believing that Beijing deliberately wants to delay the trade talks.

Earlier, a Chinese official in Beijing said that China’s top trade envoy is preparing to travel to Washington for crucial talks, despite Trump threatening to impose more punishing taxes on USD 200 billion worth of Chinese products, citing slow progress in negotiations.

“For 10 months, China has been paying tariffs to the US of 25 per cent on 50 billion dollars of High Tech, and 10 per cent on 200 billion dollars of other goods,” Trump said in a series of tweets on Sunday.

These payments are partially responsible for America’s great economic results, he said.

“The 10 per cent will go up to 25 per cent on Friday. 325 billion dollars of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25 per cent,” he said.

Trump said the tariffs paid to the US have had little impact on product cost, mostly borne by China. “The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!” he tweeted.

Hours after Trump’s tweets, CNBC News and The Wall Street Journal reported that Chinese Vice Premier Liu He will likely cancel the trip he had planned for the final round of talks.

“China is considering cancelling trade talks that are to resume in Washington starting Wednesday,” The Wall Street Journal reported Sunday quoting unnamed sources.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Retail inflation hits 6-month high of 6.3 pc in May on costlier food, fuel; wholesale inflation at record 12.94 pc
2World has to decouple trade policy, green goals: Goyal at UN Trade Forum 2021
3Consumer anxiety at highest levels, less affluent most skeptical about economic outlook: Study