(Breitbart) – Hopes for easing trade tensions between China and the U.S. ran aground the reality of Chinese resistance to reform Friday when China said it would impose new tariffs on $75 billion of U.S. products.
The tariffs will range from 5 percent to 10 percent and cover the U.S. goods not covered by earlier rounds of tariffs. In addition, China will move forward with plans to impose tariffs on U.S. vehicles and auto parts.
The new tariffs are clearly retaliation for the Trump administration’s decision to move forward with tariffs on $300 billion of Chinese goods. The Chinese tariffs will take effect in two waves, the first on September 1 and the second on December 15. Those are the same dates the new U.S. tariffs are set to be imposed.
The tariff announcement appeared to catch Trump administration officials off-guard. On Thursday, White House economic adviser Larry Kudlow was speaking in positive tones about trade negotiations and said he expected further face-to-face talks to be held in Washington, D.C. in September.
Financial markets were also caught off guard. Stock futures indicated stocks would decline when markets opened.
China imports far less from the U.S. than the U.S. does from China, limiting China’s ability to damage the U.S. economy through tariffs.
Donald Trump Urges Federal Reserve to Act After China Retaliates on Tariffs
President Donald Trump again urged the Federal Reserve to act on Friday after China announced new tariffs on $75 billion of United States products.
“Now the Fed can show their stuff!” Trump wrote on Twitter.
Federal Reserve Chairman Jerome Powell will address several issues during a speech at the Jackson Hole Economic Policy Symposium on Friday morning in Wyoming.
The speech is titled “Challenges of Monetary Policy.”
Trump has repeatedly criticized the Federal Reserve for raising interest rates despite the ongoing trade fight with China and other countries lowering their interest rates.
On Wednesday, Trump said Powell had “totally missed the call” on monetary policy.
“He did quantitative tightening. He shouldn’t have done that,” Trump said. “He raised interest rates too fast, too furious.”
Now the Fed can show their stuff!
— Donald J. Trump (@realDonaldTrump) August 23, 2019