One day after getting the interest rate cut he wanted from the Federal Reserve, President Donald Trump is abandoning his trade truce with China and imposing new tariffs on imports.
He tweeted on Thursday afternoon that Beijing did not buy United States agriculture and prevented fentanyl exports. As a result, effective September, Trump is slapping 10% levies on the remaining $300 billion in Chinese goods. This does not include the $250 billion already hit with tariffs.
Here is what he wrote:
Our representatives have just returned from China where they had constructive talks having to do with a future Trade Deal. We thought we had a deal with China three months ago, but sadly, China decided to re-negotiate the deal prior to signing.
More recently, China agreed to buy agricultural product from the U.S. in large quantities, but did not do so. Additionally, my friend President Xi said that he would stop the sale of Fentanyl to the United States – this never happened, and many Americans continue to die!
Trade talks are continuing, and during the talks the U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country. This does not include the 250 Billion Dollars already Tariffed at 25%.
We look forward to continuing our positive dialogue with China on a comprehensive Trade Deal, and feel that the future between our two countries will be a very bright one!
Trump probably planned this all along but waited for the Fed to give him lower interest rates.
Ryan McMaken of the Mises Institute summed it up perfectly: The central bank capitulated to the White House, admitted the economy is not as strong the president touts, and it has no clue what it is doing.
Bring on the extra pain!
–AM
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