Washington: Despite China’s harsh response to slapping 125% tariffs against the United States, President Trump described his tariff strategy as a positive step for the US and the world, saying that his policy was “really good”.
Investors dumped American government bonds, dollar tumbling and shares deepened deep concerns over global markets after vengeance against Trump of Beijing.
Trump sent financial markets to a tailspin by announcing extensive import taxes on dozens of business partners last week, increasing the levy on goods from China for a sudden rolling back to 10 percent on Wednesday for 90 days.
“We are really good on our tariff policy,” Trump said in a post on his true social network after China announced his latest hike.
“America, and very exciting for the world !!! It is moving quickly,” he wrote.
The White House later stated that Trump remained “optimistic” about a deal with China, and said that 15 other countries have offered “table” in their tariffs during their 90 -day break.
But Press Secretary Karolin Levit said that “the President made it very clear, when the United States is punched, he will barely punch it back.”
The US and Beijing have been trading faster rigid tariff salvos since last week.
Chinese President Xi Jinping on Friday gave his first major comment on tension, in which the state media quoted him saying that his country was “not afraid.”
Xi also said that the European Union and China should “jointly oppose unilateral bullying practices” during a conversation with Prime Minister Pedro Sanchez of Spain “.
‘Number game’
Beijing announced after Xi’s comments that new tariffs of 125 percent on American goods would be effective on Saturday – almost matching the level of 145 percent on Chinese goods coming in the US.
A spokesman for the Ministry of Chinese Commerce said that the United States fulfilled the entire responsibility, seen Trump’s tariff as a “number game” that “would become a joke.”
But the Finance Ministry of China said that tariffs would not go much in the acknowledgment that almost no imports are possible at the new level.
Trump reiterated on Thursday that he wanted to make a deal with Xi despite increasing stress.
He said, “He is my friend for a long time. I think we will do a great job for both countries.”
But US officials have made it clear that they hope that Xi will reach first.
The pressure on Trump was increasing, however, as the markets continued.
The yield on the important American government bonds, usually seen as a safe shelter, re -raised on Friday, indicating weak demand is afraid.
The White House, however, said it had no evidence to support speculation by traders that China was unloading some of its huge holdings – which increases the cost of borrowing for the US government – in vengeance.
The US Federal Reserve policy makers meanwhile warned of high inflation and slow growth due to Trump’s tariff policy.
‘Counteers’
Economists have warned that business disruption between tightly integrated US and Chinese economies will increase prices for consumers and give rise to a global recession.
IPEC Ozcardeskaya, an analyst of Swissquot Bank, told AFP that the tariff figures were “so high that they do not understand anymore,” but said that China was now ready to go as far as needed. “
The rest of the world is still calibrating its response.
Trump on Thursday described the European Union – who was originally killed by Trump with 20 percent tariff – as “very smart” to avoid an anti -retraction levy.
Top European Union officials and Chinese leaders are all set to hold their next summit to mark the 50 -year relations in China in July, the announcement by Brussels. The European Union’s trade head Maros Sefkovic will hold talks in Washington on Monday.
But 27-Nation chief Ursula von Dera Leyen told the Financial Times on Friday that it was equipped with “a wide range of counterers”, including a possible hit on digital services, which would attack the US take firms.
