Via the FT:
Donald Trump has moved to slap a 10 per cent tariff on about $200bn in Chinese imports beginning next week and threatened to increase the rate to 25 per cent in 2019 if no deal is reached to ease trade tensions between the US and China.
…“I urge China’s leaders to take swift action to end their country’s unfair trade practices. Hopefully, this trade situation will be resolved, in the end, by myself and President Xi of China, for whom I have great respect and affection,” Mr Trump said in a statement.
…In order to blunt some of the negative effects back in the US, and following an intense lobbying campaign by some of the most targeted sectors, the Trump administration decided to exempt certain products included in the original list. In a win for Apple, consumer electronics like smartwatches and bluetooth devices were removed. In addition, chemicals used in manufacturing, textiles and agriculture, as well as safety items such as bicycle helmets, playpens and high chairs for children, were struck from the list, a senior administration official said.
As expected. That ratchet mechanism is a nice addition. He added that if China retaliates then there’ll be another $267bn in tariffs coming.
Clearly the trade war will continue deep into 2019.
