The President drew attention to the tariffs for automakers in the two countries
The US President Donald trump on Monday called “stupid” trade with China, disappointed that the American automakers are suffering from the high duties on its exports, while Chinese cars in the USA are subject to much lower duties.
“When they sent a car to the US from China, duty is 2.5 percent – trump wrote in his “Twitter”. – When send a car to China from USA, duty 25 per cent. It would be a free and fair trade? No, it looks like a stupid trade, and it continues for years to come!”
In the US, the sales of Chinese cars is minimal, but some American automakers began to produce some models in China for export to the United States. Due to a 25 percent duty on American cars in China the price of Chinese consumers is thousands of dollars higher than the price of the same models in the US.
The day before trump suggested that China and the United States will be able to resolve the growing conflict over trade barriers, but the Chinese foreign Ministry said that under the current terms of trade negotiations with the US impossible.
Mutual threats between Washington and Beijing has alarmed investors and caused a sharp fluctuations in stock market indices
Treasury Secretary Steven Mnuchin said in an interview with CBS News that the threat of increased tariffs creates the risk of a trade war, but he did not believe that she will really begin.
“We do not believe that will start a trade war. Our goal is to continue discussions with China. We do not expect that there will be a trade war. She could start, but I would not expect”, – he said.
According to Mnuchin, trump and Chinese leader XI Jinping attributed the “very close relationship”, and the two countries continue to discuss trade issues.
Meanwhile, a prominent Republican Senator Lindsey Graham told ABC News that U.S. companies and consumers will inevitably suffer if China imposes new tariffs on American goods.
“We are not able to take action against China, without incurring some damage, noted Graham. – Those who believe that China behaves dishonestly, any idea is better than trump?”
As noted by senior research fellow, Peterson Institute for international Economics, Giri, Hofbauer, trump and his administration recognize that the duties on both sides will cause “great damage both economies.” “Short-term effect will be extremely negative, he said. – Both parties can obtain greater benefits from the negotiations, instead of starting a real tariff war.”