US President Donald Trump has ushered in the next round in the trade dispute. In response to Beijing’s announcement of a new round of punitive tariffs on American products, Trump imposed countermeasures on Friday. The already imposed punitive tariffs of 25 percent on Chinese goods worth $ 250 billion would be increased to 30 percent on October 1, Trump wrote in the online service Twitter. Tariffs on imports worth $ 300 billion, which are expected to take effect from September 1, also increase by five percentage points.
Previously, China had injected US $ 75 billion worth of American goods with new punitive tariffs. This should be raised in two steps on September 1 and December 15.
The already imposed punitive tariffs of 25 percent on Chinese goods worth $ 250 billion would be increased to 30 percent on October 1
After the announcement, Trump had dropped a series of angry tweets on Friday morning and announced an immediate response. “We do not need China and, frankly, we would be better off without it,” he wrote. The United States would only be deprived of China. American companies were “ordered to seek alternatives to China immediately” and produce products back home in the United States, Trump wrote.
American trade associations, however, reacted dismissively to the request of the president. Retailers’ National Retail Federation (NRF) spoke of an “unrealistic” appeal to its members. An NRF spokesman pointed out that 95 percent of the world’s consumers live outside the United States. The presence of American companies in China not only allows them to serve customers there, but also in other overseas markets. The US Chamber of Commerce had previously called on both countries to find a solution in the one-and-a-half-year trade dispute.
In the morning, the American President had the Speech by the head of the US Federal Reserve Fed, Jerome Powell, into rage. Although he had signaled willingness “to act appropriately to support the recovery,” but not announced by Trump again and again loudly demanded lowering the key interest rate.
“My only question is who our bigger enemy? Jay Powell or Chairman Xi,” Trump tweeted on Friday
Donald Trump has again massively tightened his attacks on the central bank director – even calling the Fed chief an “enemy”. Trump put Powell on a par with China’s head of state Xi Jinping. “My only question is who our bigger enemy is, Jay Powell or Chairman Xi,” Trump tweeted on Friday.
Trump’s anger at his self-nominated Powell had apparently been fueled by a speech by the Fed’s director. Powell had made it clear that he saw limited possibilities for the Fed to respond to the economic impact of the trade dispute with China. There is no “set rule book” and no recent precedents to direct a central bank response to the international trade situation, Powell said at an annual meeting of central bankers in Jackson Hole, Wyoming. However, the head of the Fed indicated that a further rate cut by the central bank is possible.
The Fed cut interest rates for the first time in more than a decade at the end of July. The reduction by 0.25 points to a level between 2.0 to 2.25 percent, however, Trump was not enough. He has been blaming Powell and the Fed for some time now for slowing American economic growth through excessive interest rates.
Trade dispute has badly hit the New York Stock Exchanges on Friday
More recently, fears of a recession have grown in the United States. Trump must fear that a significant and prolonged economic slowdown will reduce his chances in the November 2020 presidential election.
The trade dispute has badly hit the New York Stock Exchanges on Friday. Investors went bust shortly before the weekend. The Dow Jones Index of Standards closed 2.4 percent lower at 25,628 points. In Frankfurt, the Dax slipped by 1.2 percent to 11,612 points.
The trade conflict of the two largest economies is likely to occupy the weekend also the head of the G-7 Biarritz. China is not invited to the summit of leading Western industrialized countries. The trade conflict is dragging the global economy down and affecting all nations, especially export-oriented ones like Germany.