A shipping container is moved at the Port Jersey Container Terminal in Jersey City, New Jersey on April 8.CHARLY TRIBALLEAU/AFP/Getty Images
U.S. President Donald Trump was set to impose an additional 50-per-cent tariff on China, bringing the total to 104 per cent, after Beijing refused to drop its countertariffs. The levy was to go into effect after midnight on Wednesday, along with high tariffs across the board on dozens of U.S. trading partners, the White House said.
Countries rattled by Mr. Trump’s tariffs have been clamouring to meet with him, according to White House officials, after he signalled on Monday a willingness to negotiate. Beijing however, has dug in its heels.
Last week, Mr. Trump introduced sweeping new tariffs on trading partners, with a baseline tariff of 10 per cent on imports and significantly higher levies for specific countries. In the days since, stocks have tumbled at a quick pace, although some markets rallied early on Tuesday when Mr. Trump suggested negotiations could yield an easing in the trade fights.
When Mr. Trump announced his suite of tariffs, including 34 per cent on Chinese imports on top of an existing 20 per cent tied to fentanyl, China hit back, imposing a reciprocal 34-per-cent tariff on U.S. imports. On Monday, Mr. Trump escalated, threatening to impose an additional 50-per-cent tariff unless China reversed course. He said Beijing had until noon on Tuesday to do so.
China made it clear that it was not backing down. In a statement on Tuesday, China’s Ministry of Commerce said that it “firmly opposes” Mr. Trump’s 50-per-cent tariff threat and said Beijing would “resolutely take countermeasures” if Washington followed through.
“The United States’ threat to escalate tariffs on China is a mistake on top of a mistake,” the statement added, saying that “China will fight to the end.”
The White House said that across-the-board tariffs will go into effect on 57 trading partners – including the European Union – at 12:01 a.m.
Despite the swings on hopes of a reprieve, the U.S. stock market fell on Tuesday. The S&P 500 fell 1.6 per cent, the Dow Jones Industrial Average dropped 320 points and the Nasdaq composite lost 2.1 per cent.
Asian stocks tumbled again on April 9 after Donald Trump said he would hit China with tariffs totalling 104 per cent.
Reuters
White House spokesperson Karoline Leavitt told reporters on Tuesday that she spoke with Mr. Trump ahead of the briefing and that he believes China wants to make a deal with the United States – and has no choice.
“It was a mistake for China to retaliate,” she said. “The President, when America is punched, he punches back harder. That’s why there will be 104-per-cent tariffs going into effect on China tonight at midnight.”
However, she said, Mr. Trump believes that President Xi Jinping and China “want to make a deal, they just don’t know how to get that started.”
She said Mr. Trump wanted her to tell reporters that “if China reaches out to make a deal, he’ll be incredibly gracious, but he’s going to do what’s best for the American people.”
When asked to clarify whether that meant China had to make the first call, Ms. Leavitt reiterated that China wants to make a deal. “They just don’t know how to do it.”
Ms. Leavitt said that nearly 70 countries had reached out to the administration, and that “the phones are ringing off the hook.”
“There are foreign leaders who want to fly to Washington tonight and get on a plane to negotiate with this country, which shows you the leverage that the President is using. It shows you the rest of the world needs the United States to do business with.”
Ms. Leavitt pointed out that on Monday, Israeli Prime Minister Benjamin Netanyahu visited the White House to negotiate and that Mr. Trump has had calls with the leaders of Japan and South Korea.
Mr. Trump posted on Truth Social on Tuesday that he “had a great call with the Acting President of South Korea.”
He wrote that they have the “probability of a great DEAL for both countries. Their top TEAM is on a plane heading to the U.S., and things are looking good. We are likewise dealing with many other countries, all of whom want to make a deal with the United States.”
Mr. Trump said that like with South Korea, the U.S. is also raising other subjects “that are not covered by Trade and Tariffs, and getting them negotiated also.”
“China also wants to make a deal, badly, but they don’t know how to get it started. We are waiting for their call. It will happen! GOD BLESS THE USA.”
U.S. Trade Representative Jamieson Greer answered a range of questions about the Trump administration’s tariff policy from Republican and Democrat senators at the Senate Finance Committee, including on whether there is any possibility for exemptions.
Mr. Greer said Mr. Trump “does not intend to have exclusions and exemptions, especially given the nature of the action.” He said such exclusions could undermine the whole point “which is to get rid of the deficit, achieve reciprocity.”
Democrat Senator Mark Warner from Virginia opened his line of questioning by stating: “I just don’t get it.” He said the action is “probably the worst economic policies that I’ve seen in my lifetime.”
Mr. Warner said he spoke with a man who makes bourbon and sells a lot of it to Canada and “he thinks it’ll be a cold day in hell before the Canadians start buying American bourbon.” He said that trust between the two countries has been broken.
Republican Senator Steve Daines from Montana said he “shares the President’s determination to end these unfair trade practices, whether they are tariffs or non-tariff barriers. I hope we can avoid an all-out trade war.”
Mr. Daines said that a trade war will mean higher prices for the American consumer.
However, he added that he is encouraged that Mr. Trump has caught the attention of a lot of countries, noting that many want to negotiate.
With a report from the Associated Press