The Chinese Finance Ministry announced on Monday that China plans to retaliate by increasing tariffs on $60 billion in U.S. goods. This announcement comes one week after U.S. President Donald Trump’s plan to increase tariffs after China changed directives on reaching an agreement. The tariffs are said to start June 1.
Trump took to Twitter to discuss Monday’s news. “I say openly to President Xi & all of my many friends in China that China will be hurt very badly if you don’t make a deal because companies will be forced to leave China for other countries. Too expensive to buy in China. You had a great deal, almost completed, & you backed out!”
According to CNBC, “Beijing will increase tariffs on more than 5,000 products to as high as 25 percent. Duties on some other goods will increase to 20 percent. Those rates will rise from either 10 percent or 5 percent previously. On Monday, Treasury Secretary Steven Mnuchin told CNBC that the sides are still involved in negotiations. He said the administration is working on dates to travel to Beijing to continue talks.”
In an effort to combat China’s increase in tariffs, Trump announced on Monday a second round of aid for farmers who will be affected by the tariffs. Trump told reporters at the White House that his administration was planning a $15 billion aid package for farmers, but gave no details. “We’re going to take the highest year, the biggest purchase that China has ever made with our farmers, which is about $15 billion, and do something reciprocal to our farmers so our farmers can do well,”
Trump continued on Twitter,”There is no reason for the U.S. Consumer to pay the Tariffs, which take effect on China today. This has been proven recently when only 4 points were paid by the U.S., 21 points by China because China subsidizes product to such a large degree. Also, the Tariffs can be completely avoided if you buy from a non-Tariffed Country, or you buy the product inside the USA (the best idea). That’s Zero Tariffs. Many Tariffed companies will be leaving China for Vietnam and other such countries in Asia. That’s why China wants to make a deal so badly! There will be nobody left in China to do business with. Very bad for China, very good for USA! But China has taken so advantage of the U.S. for so many years, that they are way ahead (Our Presidents did not do the job). Therefore, China should not retaliate-will only get worse!”