U.S. Seeks to Weaken Hezbollah’s Grip on Lebanon Amid Israeli Offensive

[webfact]

Trump administration adds to China trade pressure with higher tariff plan

By David Lawder and Ben Blanchard

 

Aerial view of containers at a loading terminal in the port of Hamburg, Germany August 1, 2018. REUTERS/Fabian Bimmer

 

WASHINGTON/BEIJING (Reuters) - U.S. President Donald Trump sought to ratchet up pressure on China for trade concessions by proposing a higher 25 percent tariff on $200 billion worth of Chinese imports, his administration said on Wednesday.

 

U.S. Trade Representative Robert Lighthizer said Trump directed the increase from a previously proposed 10 percent duty because China has refused to meet U.S. demands and has imposed retaliatory tariffs on U.S. goods.

 

"The increase in the possible rate of the additional duty is intended to provide the administration with additional options to encourage China to change its harmful policies and behavior and adopt policies that will lead to fairer markets and prosperity for all of our citizens," Lighthizer said in a statement.

 

There have been no formal talks between Washington and Beijing for weeks over Trump's demands that China make fundamental changes to its policies on intellectual property protection, technology transfers and subsidies for high technology industries.

 

Two trump administration officials told reporters on a conference call that Trump remains open to communications with Beijing and that through informal conversations the two countries are discussing whether a "fruitful negotiation" is possible."We don't have anything to announce today about a specific event, or a specific round of discussions, but communication remains open and we are trying to figure out whether the conditions present themselves for a specific engagement between the two sides," one of the officials said.

 

Derek Scissors, a China scholar at the American Enterprise Institute in Washington, said a 25 percent tariff rate is more likely to shut out Chinese products and shift American supply chains to other countries, as a 10 percent duty could be offset by government subsidies and weakness in China's yuan currency.

 

"If we're going to use tariffs, this gives us more flexibility and it's a more meaningful threat," he said, adding that Trump's pressure strategy will not work if he does not resolve trade disputes with U.S. allies such as the European Union, Mexico and Canada.

 

But the move drew swift condemnation from U.S. business lobby groups worried that tit-for-tat tariffs would start to hamper economic growth.

 

"Escalating tariffs against China is the wrong approach to address legitimate concerns U.S. businesses have with China’s harmful practices," said Myron Brilliant, head of international affairs for the U.S. Chamber of Commerce.

 

"Each tariff escalation leads to further retaliatory action from China – ultimately inflicting even more harm on American businesses, workers, farmers, ranchers, and consumers."

 

PUBLIC COMMENTS EXTENDED

The higher tariff rate, if implemented, would apply to a list of goods valued at $200 billion identified by the USTR last month as a response to China's retaliatory tariffs on an initial round of U.S. tariffs on $34 billion worth of Chinese electronic components, machinery, autos and industrial goods.

 

Trump has ultimately threatened tariffs on over $500 billion in Chinese goods, covering virtually all U.S. imports from China.

 

The USTR said it will extend a public comment period for the $200 billion list to Sept. 5 from Aug. 30 due to the possible tariff rate rise. The list, unveiled on July 10, hits American consumers harder than previous rounds, with targeted goods ranging from Chinese tilapia fish and dog food to furniture, lighting products, printed circuit boards and building materials.

 

China said on Wednesday that "blackmail" would not work and that it would hit back if the United States takes further steps hindering trade, including applying the higher tariff rate.

 

"U.S. pressure and blackmail won't have an effect. If the United States takes further escalatory steps, China will inevitably take countermeasures and we will resolutely protect our legitimate rights," Chinese Foreign Ministry spokesman Geng Shuang told a regular news briefing.

 

Investors fear an escalating trade war between Washington and Beijing could hit global economic growth, and prominent U.S. business groups, while weary of what they see as China's mercantilist trade practices, have condemned Trump's aggressive tariffs.

 

SENATORS SEEK TARIFF LIMITS

Trump also got more pushback on his tariff plans from the U.S. Congress on Wednesday as a bipartisan group of senators, led by Republican Rob Portman of Ohio, launched new legislation that would scale back the president's power to impose tariffs for national security reasons under a Cold War-era trade law.

 

The proposal would require a more robust justification from the Department of Defense for "Section 232" tariffs such as those imposed on steel and aluminum imports and those now under consideration for autos. It would also give Congress more oversight of the process.

 

The move signals displeasure among Trump's own party over his protectionist actions, but chances of it becoming law are slim as Congress would likely need to override a presidential veto by Trump.

 

(Reporting by David Lawder, Ginger Gibson and Eric Beech in WASHINGTON, and Ben Blanchard in BEIJING; Writing by Mohammad Zargham and Michael Martina; Editing by Nick Macfie and Clive McKeef)

 

-- © Copyright Reuters 2018-08-02

[pegman]

My money is on Xie outlasting Trump in this game of chicken. Trump is losing more Republican politians by the week. He also has to borrow to provide subsidies to affected industries. True conservatives will be flipping out about that.  Xie is strong politically and just needs to sell some of China's $1T USA debt it holds to prop up their industries.

[mikebike]

6 minutes ago, pegman said:

My money is on Xie outlasting Trump in this game of chicken. Trump is losing more Republican politians by the week. He also has to borrow to provide subsidies to affected industries. True conservatives will be flipping out about that.  Xie is strong politically and just needs to sell some of China's $1T USA debt it holds to prop up their industries.

Genuinely curious... isn't targeted subsidizing exactly 45's issue with Canada, EU, China, etc? ?

[edwinchester]

"Trade wars are good and easy to win"

[jackh]

Trump is holding the cards. China economy will tank unless the Chinese get of this face saving attitude and buck up to the fact they will no longer screw the US with unfair trade. Both side will feel the pain, but China will get spanked hard unless they come to the table and start dealing on a level playing field. Trump will NOT back down in China. MAGA

[stevenl]

40 minutes ago, jackh said:

Trump is holding the cards. China economy will tank unless the Chinese get of this face saving attitude and buck up to the fact they will no longer screw the US with unfair trade. Both side will feel the pain, but China will get spanked hard unless they come to the table and start dealing on a level playing field. Trump will NOT back down in China. MAGA

You have anything to back your beliefs?

[mikebike]

1 hour ago, jackh said:

Trump is holding the cards. China economy will tank unless the Chinese get of this face saving attitude and buck up to the fact they will no longer screw the US with unfair trade. Both side will feel the pain, but China will get spanked hard unless they come to the table and start dealing on a level playing field. Trump will NOT back down in China. MAGA

55555555!!

 

China could ride out this trade dispute for a DECADE using only US debt held... 

[Srikcir]

8 hours ago, webfact said:

"We don't have anything to announce today about a specific event, or a specific round of discussions, but communication remains open and we are trying to figure out whether the conditions present themselves for a specific engagement between the two sides,"

The Trump administration could have copied this statement with regard to its negotiations with North Korea on denuclearization.

We have nothing, we see nothing, we hear nothing.

But Trump has forged a "strong relationship with Xi" and that "will facilitate an agreement" with China.

https://www.cnbc.com/2018/05/14/wilbur-ross-strong-relationship-between-trump-and-xi-key-to-trade.html

Just as Trump did with Kim.

Is America tired of winning yet?

[Tug]

Hummm....Donald needs China to help with N Korea but he is starting a trade war with them.....tax break for the rich......blow up the debt......devide the country.....and that’s just the start of it wow are you tired of winning yet?

[bristolboy]

8 hours ago, jackh said:

Trump is holding the cards. China economy will tank unless the Chinese get of this face saving attitude and buck up to the fact they will no longer screw the US with unfair trade. Both side will feel the pain, but China will get spanked hard unless they come to the table and start dealing on a level playing field. Trump will NOT back down in China. MAGA

Here is something from Joseph Stieglitz pointing out the futility of trying to reduce the balance of trade when the Federal government is expanding its budget deficits

"First, macroeconomics always prevails: if the United States’ domestic investment continues to exceed its savings, it will have to import capital and have a large trade deficit. Worse, because of the tax cuts enacted at the end of last year, the US fiscal deficit is reaching new records – recently projected to exceed $1 trillion by 2020 – which means that the trade deficit almost surely will increase, whatever the outcome of the trade war. The only way that won’t happen is if Trump leads the US into a recession, with incomes declining so much that investment and imports plummet."

https://www.project-syndicate.org/commentary/trump-loses-trade-war-with-china-by-joseph-e--stiglitz-2018-07

What that means is, even if the US manages to reduce its deficit with China, that just means its trade deficit will correspondingly increase with other nations. There's no way around it.  Of course because the goods Americans buy from elsewhere will be more costly, they'll be getting less bang for their bucks.

[Redline]

Easier with allies.  There is a big problem with China stealing and its subsidies.  He should have coordinated wth all the allies he has shut out.  Maybe a free trade pact with Russia is in the cards?

[Credo]

30 minutes ago, Redline said:

Easier with allies.  There is a big problem with China stealing and its subsidies.  He should have coordinated wth all the allies he has shut out.  Maybe a free trade pact with Russia is in the cards?

You're right, but just who are allies these days?  North Korea and Israel?   Does anybody else trust him?

 

 

 

[Scott]

Troll post and reply removed. 

 

[spidermike007]

Trump trying to outplay Xi, is like Shai Labeouf trying to out act De Niro. Or Lonzo Ball trying to outplay Steph Curry. Just not gonna happen. The tangerine tornado is way outside of his class. He cannot negotiate his way out of a paper bag. He is the most destructive man on earth. He is moving America backwards. He is making America less great every day he wakes up. He cannot help but shoot himself in the foot, every time he engages in his infantile tweets. Now, he is running scared. The heat is getting a bit too close to home. This failure is going down in flames. Hopefully soon. 

[Redline]

10 hours ago, Credo said:

You're right, but just who are allies these days?  North Korea and Israel?   Does anybody else trust him?

 

 

 

The guy has no friends, and probably never has.  That is exactly how he is trying to run the country.  It may very well backfire in this position.  He has only a win/lose mentality

Edited August 3, 2018 by Redline

[jackh]

On 8/2/2018 at 3:22 PM, stevenl said:

You have anything to back your beliefs?

Sure do! It's called logical common sense, AND Trumps great success with this strategy in the past. It works and will work again. The "face" factor will only delay China a little longer, but it will happen. 

[stevenl]

3 hours ago, jackh said:

Sure do! It's called logical common sense, AND Trumps great success with this strategy in the past. It works and will work again. The "face" factor will only delay China a little longer, but it will happen. 

ROFL.