Trump: things are going very well with China as markets fall on tariffs | American News

Donald Trump said things were "going very well" with China, a day after financial markets around the world collapsed following the president's threat to impose a new $ 300 billion tariff. (248 billion pounds sterling) of Chinese products, in a rapid escalation of the trade war between Washington and Beijing.

The FTSE 100 fell by more than 2% as European markets plummeted on Friday, continuing a wave of selling pressure around the world following the president's announcement on Thursday night, which wiped out all hope of resolution of the trade war between the two countries. .

In discussing Saturday, Trump sought to minimize tensions and insisted that US consumers were not paying the import taxes he had imposed on products from that country, although economists say the Americans pay the bill.

"Things are going very well in China. They pay us tens of billions of dollars, made possible by their currency devaluations and huge sums of money to make their system work. Until now, our consumer pays nothing – and no inflation. No help from Fed! "Trump said on Twitter.

He also said – without presenting evidence – that countries were asking to negotiate "real trade agreements", saying on Twitter: "They do not want to be targeted by the US in terms of tariffs."

Trump abruptly decided Thursday to spoil 10% of tariffs on $ 300 billion of Chinese imports, stun the financial markets and put an end to a commercial truce for a month.

China on Friday promised to retaliate and said that she would not be intimidated by Trump. Foreign Ministry spokeswoman Hua Chunying said the country would not give an inch under pressure from Washington, Reuters reported.

The White House already levies tariffs of 25% on 250 billion dollars of Chinese products. If we add up both, this means that all Chinese imports to the United States are subject to higher taxes. China sold $ 539.7 billion worth of goods to the United States last year.

Tariffs aim to increase the price of foreign products to stimulate domestic producers, unless international exporters reduce their prices.

But there is no indication that China is cutting prices to accommodate Trump's tariffs.

A study published by the National Bureau of Economic Research in March found that all tariff costs imposed in 2018 were pbaded on to US consumers.

The trade dispute between the United States and China has had a chilling effect on the global economy, as global trade volumes have fallen and large companies have suspended investment. Growth has slowed around the world, as several major countries have faced recession.

Reuters contributed to this report