Amid global fears of an escalating trade dispute between the USA and China, President Donald Trump suggested that Beijing will ease trade barriers "because it is the right thing to do" and that the economic superpowers can settle the conflict that has rattled financial markets, consumers and businesses.
The further tariffs were being considered "in light of China's unfair retaliation" against earlier US trade actions, which included a proposed $50 billion of tariffs on Chinese goods, Trump said in a White House statement on Thursday. Taxes will end up reciprocal and a bargain will be reached on intellectual land. "Great future for both countries!"
Trump's latest proposal intensified what was already shaping up to be the biggest trade battle in more than a half century. There was a massive market sell-off as tensions between China and the United States continue to escalate, and their is fear that further escalation could lead to a trade war.
In addition to threatening penalties on American goods, China has also asked the business community in the United States and elsewhere to protest the planned Trump tariffs.
"We call on the global business community including the United States industrial and commercial circles to take prompt and effective measures and urge the USA government to correct its errors", said state newspaper People's Daily.
Trump's chief economic adviser, National Economic Council Director Larry Kudlow, has repeatedly sought in recent days to soothe concerns about a trade war, stressing that no tariffs have yet been implemented. Kudlow said tariffs have only been proposed, and are now undergoing a public preview process; no final decisions have been made.
"I don't think there's any trade war in sight", Kudlow said.
"We're moving forward on a measured way with tariffs, with investment restrictions", Navarro said on NBC's "Meet The Press".
The advance in the Dow Jones Industrial Average since Trump's inauguration is now 20.7 percent, placing the former NY real estate developer in eighth position at this point in his tenure among presidents since 1900, according to data compiled by Bloomberg.
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The administration's threats toward China have made markets apprehensive.
The Chinese government exuded confidence in the aftermath of the implementation of new tariffs and the Chinese Vice Minister of Finance declared that "China is not afraid of a trade war".
The China trade issues should be handled in "a much more calculated way", Crowley said.
Last Friday, China launched a World Trade Organisation complaint against the United States, triggering a 60-day deadline for the two countries to settle the matter.
On Thursday, " Trump led USA trade officers to identify tariffs about a second £ 100 billion of Chinese imports, upping the ante in a high-stakes trade confrontation among your world' two largest economies.
In the wake of Trump's decision in March to impose steep tariffs on steel and aluminum imports, primarily to target China, the U.S. on Tuesday published a list of US$50 billion in Chinese goods to be hit by tariffs over what Washington says is widespread theft of intellectual property and technology.
Trump hit back again late Thursday, instructing trade officials to consider the additional levies on $100 billion in imports.
"The United States hasn't had a Trade Surplus with China in 40 years", the president said.
Rather than waiting weeks for USA tariffs to be implemented, Trump backed a plan by Robert Lighthizer, his trade representative, and was encouraged by Navarro to seek the enhanced tariffs.