President Donald Trump gave another justification for his tariff hikes, saying products need to be made in the USA in case the country goes to ‘war.’
‘We’re going to have our drugs made in the United States, so that in case of war, in case of whatever, we’re not relying on China and various other countries, which is not a good idea,’ Trump told reporters on Air Force One Sunday evening.
{snip}
And as Trump left open the possibility of more tariffs to come, Chinese President Xi Jinping, in Vietnam as part of Southeast Asia tour, had his own words of warning.
‘There are no winners in a trade war, or a tariff war,’ Xi wrote in an editorial jointly published in Vietnamese and Chinese official media. ‘Our two countries should resolutely safeguard the multilateral trading system, stable global industrial and supply chains, and open and cooperative international environment.’
{snip}
China has been a top target of the White House.
Trump put a 90-day pause on many of his on-again, off-again reciprocal tariffs but left in place a 145% import tax on goods from China.
In response, Beijing suspended exports of certain rare earth minerals and magnets that are crucial for the world’s car, semiconductor and aerospace industries.
{snip}
Trump’s top economic adviser said China’s action was ‘concerning.’
‘They’re concerning. And we’re thinking about all the options right now,’ Kevin Hassett told reporters outside the White House. ‘Rare earths are a part of lots of the economy. It’s a little bit of the value add to the US economy, but a crucial part of the value added.’
He said the administration was helping small businesses that relied on supplies out of China find alternative resources.
{snip}
Until 2023, China produced 99 percent of the world’s supply of heavy rare earth metals.
China also produces 90 percent of the world’s nearly 200,000 tons a year of rare earth magnets, which are far more powerful than conventional iron magnets.
‘The White House is concerned about China. Period,’ Hassett noted.
And there may be more tariffs to come.
{snip}
‘The tariffs will be in place in the not-too-distant future,’ he said.
The U.S. markets opened slightly higher Monday off the news that Smartphones, computers, memory chips and several other categories of products will be exempt from tariffs.
Trump, however, warned they might still be targeted although he said he will be ‘flexible’ on the matter.
{snip}
Meanwhile there is growing concern in corporate America about the volatility the tariff war is causing in the global stock markets.
A majority of America’s top business executives are worried the country could enter a recession soon, a new survey found.
{snip}
‘Right now, we are at a decision-making point and very close to a recession,’ Ray Dalio, the founder of Bridgewater Associates, one of the world’s largest hedge funds, told NBC’s Meet the Press on Sunday.
‘And I’m worried about something worse than a recession if this isn’t handled well.’
* Original Article:
https://www.dailymail.co.uk/news/article-14608231/amp/trump-war-china-trade-tariffs-iphones.html?ito=smartnews
