August 26, 2019
Gotcha! Just as President Donald Trump was preparing to meet with the leaders of Canada, France, Germany, Italy, Japan, and the United Kingdom at the G7 Summit in Biarritz, France, to discuss the global economy and his trade wars, China on Friday announced it would impose tariffs on $75 billion worth of U.S. imports, ABC News reported.
The move came in retaliation for duty hikes that the United States already has pledged to slap on Chinese imports starting next month.
What’s more, the announcement also came just before Jerome Powell, the chairman of the Federal Reserve gave a speech investors and analysts planned to scrutinize for signs of how the central bank would address worries of a slowing economy—as well as the president’s often mixed signals on payroll tax cuts.
According to ABC News, Powell implied in his speech that Trump’s trade altercations were among the factors precipitating a possible global economic slowdown— and he said they have made it more difficult for the Fed to set policies on interest rates.
China said that it would impose its new penalties on two batches of goods, on September 1 and December 15, according to the official Chinese news agency Xinhua. It said 5,078 American products would see duty hikes of 5% or 10% first; and that the later tariffs would hit “American-made vehicles and auto parts” with tariffs of 5% or 25%.
Those dates match with 10% tariff the Trump administration said would go into effect on $300 billion worth of imports from China.
Trump on Friday morning argued in a tweet that the economy was “strong and good, whereas the rest of the world is not doing so well.”
According to ABC News, the president has made the economy a central message of his campaign, and has accused the news media and Democrats of wanting a recession in order to tank his reelection chances.
Research contact: @ABC