Donald Trump went on a rambling Twitter rant this morning. In his tweets, he warned that China would be “hurt very badly” in a trade war with the U.S.
Trump seemed to threaten Chinese President Xi Jinping, saying that China should not retaliate for newly imposed tariffs. He also accused the Chinese president of backing out of “a great deal.”
In the barrage of misspelled tweets, Trump claimed “there will be nobody left in China to do business with.”
However, China has already chosen to retaliate, announcing today their plans to raise tariffs on many American goods. The U.S. stock market has plummeted as a result.
Tariffs Affecting U.S. Consumers
The multi-tweet rant followed a television appearance made by his top economic advisor Larry Kudlow on Fox News. In an interview, Kudlow admitted that the U.S. would, in fact, see price increases thanks to the increase on tariffs.
“Both sides will suffer on this,” Kudlow said.
“Their is no reason for the US Consumer to pay the Tariffs, which take effect on China today,” Trump, however, insisted. Though technically the tariffs do not go into effect for a few weeks.
Continuing, the U.S. president noted, “Also, the Tariffs can be completely avoided if you by from a non-Tariffed Country, or you buy the product inside the USA (the best idea). That’s Zero Tariffs. Many Tariffed companies will be leaving China for Vietnam and other such countries in Asia. That’s why China wants to make a deal so badly!”
But does China really want to make a deal?
Trade War with China
Trump said in his tweets that the tariffs would be “Very bad for China, very good for USA!”
Additionally, he went on to say: “But China has taken so advantage of the U.S. for so many years, that they are way ahead (Our Presidents did not do the job),” blaming his predecessors for the state of things.
He also later tweeted that tariffs from China had “greatly helped” the United States’ GDP so far this year, adding “Some people just don’t get it!”
As for China, their state newspaper The People’s Daily told readers that the tariff hikes are “nothing to be afraid of.”
Though Trump claims China will be hit the hardest, much of the burden will fall on U.S. businesses and consumers. With China raising their tariffs on imports in response, it seems there will continue to be increased economic struggle.
U.S. farmers will again be greatly impacted. As such, it seems Trump likely plans to approve another round of financial aid for them. Additionally, China will be raising tariffs on liquefied natural gas imports as well. For states like Oklahoma, Texas, and Louisiana, this will hurt them a lot, too.
It’s also unclear if China’s retaliation will end at simply higher tariffs that go into effect on June 1. They have, in the past, created additional hurdles when tensions have risen – including slowing imports and investigating foreign countries.