Trade war: Donald Trump praises tariffs as China talks hang in the balance

US President Donald Trump said tariffs have bolstered the US bargaining position while cost increases to consumers have been negligible and warned of more levies as prospective trade talks with China appeared in doubt.

“Tariffs have put the US in a very strong bargaining position, with Billions of Dollars, and Jobs, flowing into our Country - and yet cost increases have thus far been almost unnoticeable,” Trump said on Twitter Monday. “If countries will not make fair deals with us, they will be ‘Tariffed!’”

Trump’s tweet came as CNBC reported a senior administration official said the US is ready to go with $200 billion in additional tariffs on Chinese goods and may announce them as soon as Monday. Beijing will be forced to retaliate if US rolls out new tariffs against the country, Chinese Foreign Ministry spokesman Geng Shuang was cited by Huanqiu.com as saying.

Trump also touted the benefits his 25 per cent tariffs on steel imports have had so far on US industry, as some companies have deployed promotional campaigns in support of those measures targeting voters in iron- and steel-producing states. Opponents have said the import barriers may raise costs, lower earnings or force employers to dismiss workers or move operations offshore.

“Our Steel Industry is the talk of the World. It has been given new life, and is thriving. Billions of Dollars is being spent on new plants all around the country!” Trump said in another tweet on Monday.

Conflicting messages coming from the Trump administration on tariffs amid the US trade war with China could sink prospective negotiations between the two nations before they begin, damaging prospects for a resolution to the growing dispute.
 
 

A new life for US steel: Trump pats own back
 
US President Donald Trump claimed Monday that America’s steel industry has revived and attributed this to his economic policy and decisions. American Iron and Steel Institute, in its latest report, said that the US’ steel mills operated above 80 per cent of their capacity last week.

Its CEO Thomas J Gibson said that tariffs on foreign steel have been saving US jobs. Trump said in a tweet: “Our steel industry is the talk of the World. It has been given new life, and is thriving. Billions of dollars is being spent on new plants all around the country!”

The US President had imposed steep tariffs on steel and aluminum imports from Canada, Mexico and the European Union on national security grounds.

Gibson wrote in USA Today that “The president’s actions are working. Steel imports fell 34 per cent from April to June, prompting job growth.”                PTI