President Trump took to Twitter Sunday afternoon announcing that the 10 percent tariff on $200 billion worth of Chinese goods would rise to 25 percent on Friday.
….of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%. The Tariffs paid to the USA have had little impact on product cost, mostly borne by China. The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!
— Donald J. Trump (@realDonaldTrump) May 5, 2019
President Trump also announced that his administration could also impose tariffs on an additional 325 billion worth of Chinese goods, “shortly.”
CNBC News reports that Vice President on Friday told them, that President Trump remained hopeful a deal with China could happen.
Press Secretary Sarah Huckabee Sanders said on Wednesday that “Discussions remain focused toward making substantial progress on important structural issues and re-balancing the US-China trade relationship.”
Axios explains regarding the President’s claim that China is paying billions of dollars into the U.S. Treasury is “incorrect the tariffs are paid by U.S. importers of affected Chinese goods, not by China’s government or by Chinese companies. Importers then either raise costs on consumers, lower their own profit margins or both.”
CNBC News said that sources had told them the U.S., and China, could announce a “trade deal with China” was “possible” by next Friday, sources told CNBC on Wednesday.”
The announcement now seems unlikely in light of President Trump’s two tweets.
The Washington Post reports that on Wednesday “Chinese Vice Premier Liu He is scheduled to arrive in Washington leading a delegation of more than 100 officials, in hopes of wrapping up a deal.”
For What It’s Worth.
This is a developing story, having said that, this might likely be President Trump’s heavy handed way of pressuring China to finish the deal on Wednesday.
I’m not defending him, this policy by tweeting is absolutely insane and tariffs are simply taxes on American’s, this idea they have no impact on American’s is economically feckless, especially as soy bean farmers have been hit hard by the trade war between China and the U.S., they aren’t alone.
Most sources report that the hang up on a deal seems to stem from President Trump’s unwillingness to remove the 10 percent now to be 25 percent tariffs on Chinese imports.
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