Markets Plunge As Trump Pushes Consumer-Related Tariffs That Will ‘Hurt Americans More Than China’

While the United States and China have both said they are open to resuming talks to put an end to the ongoing trade war, President Trump has announced that he plans to place additional tariffs on Chinese goods.
Stock markets plunged around the world, after President Trump announced plans to impose new tariffs on Chinese goods, which would go into effect while the two countries are planning to carry out trade talks.
In early trading on Friday, “London’s main index lost 2% and Frankfurt fell 2.5%. Tokyo’s benchmark was off 2.1% and Hong Kong retreated 2.5%.”
The new tariffs came as a surprise, as they followed trade talks between top representatives from the US and China that were deemed productive by both sides.
Trump announced the increase on Twitter, where he said the talks were constructive, and there are plans to continue dialogue, but* the US plans to impose an additional 10 percent tariffs on $300 billion dollars’ worth of Chinese imports, beginning September 1.
He justified the move by arguing that China has not followed through on promises to invest in large quantities of agricultural products. He also claimed China is responsible for selling Fentanyl to the US, and taking American lives.
This comes in addition to the 25 percent tariffs the US has already imposed on $250 billion dollars’ worth of Chinese goods. At a campaign rally in Ohio, Trump also accused China of stealing American jobs and intellectual property.
For the last 20 years, China has taken hundreds and hundreds of billions of dollars out of our country,” Trump said. “And now we’re stopping the theft of American jobs. We’re stopping the theft of so many other things happening including intellectual property.
However, China fired back, and argued that if the US imposes new tariffs, then China will retaliate with counter measures.
This action seriously violates the consensus of the meeting between the two heads of countries in Osaka, deviates from the correct track and it is not conducive to solving the problem. China is strongly dissatisfied with this and firmly opposes it,” said Hua Chunying, a spokesperson for China’s Ministry of Foreign Affairs.
So far, the Trade War has cost China’s spot as the United States’ top trading partner in the first half of 2019, as reports from the Commerce Department show that US imports from China fell 12 percent and exports fell 19 percent.
While Trump claimed that the latest round of tariffs will not impact American consumers, financial experts have noted that because the new tariffs target consumer-related products such as toys, laptops and phones, they could actually stand to hurt consumers in the US more than China, as the Trade War wages on.

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Rachel Blevins is a journalist who aspires to break the left/right paradigm in media and politics by pursuing truth and questioning existing narratives.

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