Trade War Escalates: China Backs Out of Trade Talks Due to Trump’s Latest Round of Tariffs
This month alone, Trump has given farmers over $25 million to bail them out of the trade war which he has created. These farmers are mostly Trump supporters who voted for him because of his promise to help them from an economic standpoint. Instead, his trade war has hurt them significantly and now he’s using taxpayer dollars to bail them out of this self-made mess.
Just last week, the U.S. proposed a new round of trade talks, as they believed that the Chinese government was becoming more flexible in their demands. Trump then, however, proceeded to announce a new round of tariffs on $200 billion worth of Chinese goods being imported into the United States. China then retaliated with their own tariffs on $60 billion in U.S. goods.
Now, as of early this morning, China is backing out of the planned trade talks, saying that they will not engage in meetings while the U.S. uses pressure tactics.
“Nothing the U.S. has done has given any impression of sincerity and goodwill,” China’s Foreign Ministry spokesman Geng Shuang on Friday, according to the Wall Street Journal. “We hope that the U.S. side will take measures to correct its mistakes.”
Now it appears as though trade talks won’t resume until, at the earliest, after the midterm elections in November.
While the U.S. tries to pressure China into succumbing to economic forces, China isn’t battling this war unarmed. In fact, they still have plenty of tools in their own toolbox to fight back at America’s implementation of tariffs.
If China really wanted to fight back hard, they could do it, not only via tariffs of their own, but through other economic measures as well. These include: devaluing the Chinese Yuan, reducing or completely halting their purchase of U.S. treasury bonds, and making it more difficult for U.S. companies to operate within Chinese borders.
Regardless of what future actions are taken by the United States or China in this trade war, the latest round of tariffs by Trump will directly affect American consumers. It is expected that these tariffs will cause an immediate increase in prices that U.S. consumers pay for goods.
With the midterms coming up, this can’t bode well for Trump’s fellow Republicans.