President Trump today followed through on his threat, issued earlier this week, that the U.S. would increase U.S. tariffs to 25 percent on $200 billion worth of Chinese imports. In response, China expressed its “deep regret over the development,” and threatened to retaliate. This type of back-and-forth has been the M.O. of the trade war.
“We hope the United States will meet us halfway, and work with us to resolve existing issues through cooperation and consultation,” China’s Ministry of Commerce said in a statement, according to CNN.
However, the Chinese government didn’t provide any details about what its possible retaliation could look like.
Earlier this morning, the president took to Twitter to express optimism over ongoing trade talks with China, but also backed his decision to increase tariffs in the interim.
Talks with China continue in a very congenial manner – there is absolutely no need to rush – as Tariffs are NOW being paid to the United States by China of 25% on 250 Billion Dollars worth of goods & products. These massive payments go directly to the Treasury of the U.S….
— Donald J. Trump (@realDonaldTrump) May 10, 2019
….If we bought 15 Billion Dollars of Agriculture from our Farmers, far more than China buys now, we would have more than 85 Billion Dollars left over for new Infrastructure, Healthcare, or anything else. China would greatly slow down, and we would automatically speed up!
— Donald J. Trump (@realDonaldTrump) May 10, 2019
A Chinese delegation led by trade negotiator Vice Premier Liu He arrived in Washington, D.C., yesterday for another round of discussions with the U.S. Liu said he “hopes to engage in rational and candid exchanges with the U.S. side,” according to CNN, and added that raising tariffs wouldn’t solve the problems at hand.
Before the talks on Thursday, President Trump said he received a letter from Chinese President Xi Jinping that he said showed the possibility of reaching a positive conclusion.
“It’s possible to do it,” Trump said of finding an agreement without a tariff hike. “I have no idea what’s going to happen.”
