"Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the U.S.".
President Donald Trump on Friday (Aug 23) pressured U.S. companies to leave China after Beijing unveiled retaliatory tariffs on US$75 billion (S$100 billion) in USA goods, stoking fears their escalating trade war will tip the global economy into recession.
Instead, the president tweeted that he would be "responding to China's Tariffs this afternoon".
The tech industry disagrees. The same was promised by the State Council Tariff Committee last week, but neither Gao nor the committee clarified what steps China will take. "I want Apple to build their plants in the United States". He said they were "well anticipated" and would only strengthen Mr Trump's resolve. The announcement from China's Finance Ministry said the new duties on top of existing rates will take effect on September 1 and December 15.
A 25 percent tariff on automobiles and a 5 percent tariff on auto parts will go into effect on December 15.
It said 5,078 American products would see duty hikes of 5 or 10%, and that on December 15, it would hit "American-made vehicles and auto parts" with tariffs of 5 or 25%, according to Xinhua.
The two leaders met most recently on the sidelines of the Group of 20 summit in Osaka, Japan, in late June, during which Trump announced that trade talks would resume.
Trump also said China had not lived up to promises to stop fentanyl shipments to the U.S. As a result, he said he was ordering FedEx, Amazon, UPS, and the U.S. Post Office search for and destroy any fentanyl in shipments from China. Beijing had planned those tariff hikes past year but temporarily dropped them to keep the talks going. Carmakers such as Daimler and Tesla had adjusted their prices in China when the auto and auto parts tariffs had been suspended. Majority are luxury cars and SUVs with higher profit margins that can cover higher US wages. We can have a huge influence on how other countries act and react with us. The exports are down from about 262,000 in 2017.
Meanwhile, White House economic adviser Larry Kudlow told Fox Business Network Thursday that the White House is considering a "tax cuts 2.0 package" to help the economy, but said a short-term payroll tax cut "would have no lasting effect". "For the next top three, Chile, Malaysia and Argentina, the trade diversion is mostly additional China imports". Beijing retaliated by imposing its own penalties on $110 billion of American goods.