President Donald Trump on Monday said the US has been losing $500 billion per year on trade with China and he will no longer allow that to happen any more.
“The United States has been losing, for many years, 600 to 800 Billion Dollars a year on Trade. With China we lose 500 Billion Dollars. Sorry, we’re not going to be doing that anymore!” Trump tweeted.
The tweet, a follow up of a series of tweets a day earlier, is indicative of the fact that Trump does not want to wait any longer on trade negotiations with China and he is increasingly believing that Beijing deliberately wants to delay the trade talks.
Earlier, a Chinese official in Beijing said that China’s top trade envoy is preparing to travel to Washington for crucial talks, despite Trump threatening to impose more punishing taxes on USD 200 billion worth of Chinese products, citing slow progress in negotiations.
“For 10 months, China has been paying tariffs to the US of 25 per cent on 50 billion dollars of High Tech, and 10 per cent on 200 billion dollars of other goods,” Trump said in a series of tweets on Sunday.
These payments are partially responsible for America’s great economic results, he said.
“The 10 per cent will go up to 25 per cent on Friday. 325 billion dollars of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25 per cent,” he said.
Trump said the tariffs paid to the US 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!” he tweeted.
Hours after Trump’s tweets, CNBC News and The Wall Street Journal reported that Chinese Vice Premier Liu He will likely cancel the trip he had planned for the final round of talks.
“China is considering cancelling trade talks that are to resume in Washington starting Wednesday,” The Wall Street Journal reported Sunday quoting unnamed sources.