Trump asks US trade representative to consider $100 billion in additional tariffs

CNBC ^ | 04/05/2018 | Chloe Aiello

[SpeedyInTexas]

President Donald Trump on Thursday said he has instructed the United States Trade Representative to consider $100 billion in additional tariffs against China.

"In light of China's unfair retaliation, I have instructed the USTR to consider whether $100 billion of additional tariffs would be appropriate under section 301 and, if so, to identify the products upon which to impose such tariffs," Trump said in a statement.

[SpeedyInTexas]

I'm stunned. OMG, TRUMP HAS BALLS.

GO TRUMP GO.

[SpeedyInTexas]

"Following a thorough investigation under section 301 of the Trade Act of 1974, the United States Trade Representative (USTR) determined that China has repeatedly engaged in practices to unfairly obtain America's intellectual property. The practices detailed in the USTR's investigation have caused concern around the world. China's illicit trade practices − ignored for years by Washington − have destroyed thousands of American factories and millions of American jobs. On April 3, 2018, the USTR announced approximately $50 billion in proposed tariffs on imports from China as an initial means to obtain the elimination of policies and practices identified in the investigation. Rather than remedy its misconduct, China has chosen to harm our farmers and manufacturers. In light of China's unfair retaliation, I have instructed the USTR to consider whether $100 billion of additional tariffs would be appropriate under section 301 and, if so, to identify the products upon which to impose such tariffs. I have also instructed the Secretary of Agriculture, with the support of other members of my Cabinet, to use his broad authority to implement a plan to protect our farmers and agricultural interests. Notwithstanding these actions, the United States is still prepared to have discussions in further support of our commitment to achieving free, fair, and reciprocal trade and to protect the technology and intellectual property of American companies and American people. Trade barriers must be taken down to enhance economic growth in America and around the world. I am committed to enabling American companies and workers to compete on a level playing field around the world, and I will never allow unfair trade practices to undermine American interests."

[freespirit2012]

more winning..

[DoodleDawg]

He said trade wars are easy to win. I guess we’re going to find out.

[2banana]

God Bless DJT for standing up for America. Finally, a president looking out for the average American citizen and NOT Wall Street.

$400 billion trade deficits with China PER YEAR. They require IP from American companies to do business there. They require joint ventures to sell anything there. Very difficult to take profits out. Etc. Etc. Etc.

Now China is going to put tariffs on imported food. Go right ahead. Food riots in about 3 months. China is NOT self sufficient in FOOD or ENERGY.

The fact is China has everything to lose. China needs American trade and products to SURVIVE. America doesn’t need China. Yeah, OK - my HDTV will be $10 more expensive. We will get through it. And then import cheap electronics from other nations or, maybe, even start to make things again in America.

Tick - Tock China. You are about to get schlonged.

[SpeedyInTexas]

He might be right.

China can not impose another $100 billion in tariffs.

Why? Because we only exported $115 billion to them in 2016. They already announced tariffs on $50 billion. So there is only another $65 billion remaining.

(these are $2016 numbers, 2017 numbers could be higher, couldn’t locate them immediately)

[Paulie]

I’m no trade expert, but...

Why don’t we determine exactly what needs to be done, including tariffs, to make the trade situation right - and do it the first time?

Seems that tit-for-tat might not be the best way to go.

[SpeedyInTexas]

Actually, Trump did that. He asked President Xi for a plan to reduce the trade deficit by $100 billion per year. Xi ignored him.

[butlerweave]

and the Chinese say we have Treasuries so there ,LOL good luck

[bigbob]

Pretty much right on. The export industry now supports millions of Chinese with a standard of living the old central planning Communist system could never do. Those in this growing middle class do not wish to go back and be peasants again, and Chinese leaders know it. That’s why they are despearate to find new export markets like Africa, and why they cannot afford a trade war with the US that will instantly cause internal tension to rise.

They need US more than we need them.

[Paulie]

Copy that.

Thank God we have someone we can trust who FIGHTS.

[Salvavida]

If you are a Latin American business man or president, THIS is the time to cash in and remove China from being a supplier.

[DoodleDawg]

China can not impose another $100 billion in tariffs.

Sure they can. Why couldn't they?

Why? Because we only exported $115 billion to them in 2016. They already announced tariffs on $50 billion. So there is only another $65 billion remaining.

Closer to $170 billion, according to the U.S. Trade Representatives website.

[Crucial]

If you’re going to double down and you know you have a strong hand, you don’t retreat when there’s pushback. You double down until they give up because they know they will suffer more than you.

[lodi90]

He said trade wars are easy to win. I guess we’re going to find out.

---

This isn’t a trade war. The chicoms have robbed us blind and now the bill is due.

[edh]

“Seems that tit-for-tat might not be the best way to go.”

Tit-for-tat forces China to reply in moderation :-) ... they can’t ignore the tariffs :-).

If you’d go all in from the start, you risk a massive shock to the financial system. Look at how markets responded to a rather low tariff ... they went haywire, but they’re recovering.

The way it’s being handled now, it’s more like a negotiation where we respond to the Chinese response. They aren’t going to risk more than they can afford. Neither are we. The Chinese are many things, but they aren’t exactly irrational ... they’re very calculated.

That’s the way I see it anyway ... you plan your moves in advance and slowly raise the stakes in response to what happens. Unless China reacts irrationally, both sides will strike a balance that will benefit the USA w/o causing major problems with China.

[lodi90]

Actually, Trump did that. He asked President Xi for a plan to reduce the trade deficit by $100 billion per year. Xi ignored him.

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No doubt because the chicom dirtbag has a plan to increase the trade deficit by $100 billion per year.

[DoodleDawg]

Why don’t we determine exactly what needs to be done, including tariffs, to make the trade situation right - and do it the first time?

Because we don't know what China will to in retaliation.

[SpeedyInTexas]

I remember reading an article about the Federal Reserve studying the impact of China dumping US treasuries. The conclusion was the US treasury market was “deep” and could handle such selling.

In the short term, China selling would drive Treasuries lower and yields higher. But it wouldn’t last. In fact, such a scenario may prevent the Federal Reserve from raising rates 3 more times this year as some economists predict (because of GDP growth and low unemployment).

[Salvavida]

Not onlt that, but now China will not be able to afford military expansion. We have been funding their military build up for decades.