The first effect of the
that Donald Trump has opened is the sharp decline in the export of products and materials manufactured in the United States that until just a few months ago China bought avidly. One of them is liquefied natural gas, of which Beijing was until the end of 2018 the third buyer and now does not even reach the 15th place in the list of importers. In addition, since this week, that fuel is subject to tariffs of 25%, and that is why the US president visited on Tuesday one of its main export plants, the Cameron LNG in Louisiana.
«We are again in a very strong position. They want to reach an agreement and it is likely to happen. Meanwhile, we are entering a lot of money in the USA. and showing strength. Nothing similar has happened to China before, "said the president. The truth is that tariffs of 25% on an estimated amount of 250,000 million dollars (223,000 million euros) are actually paid by American companies that buy their products from China.
Trump is trying to maintain a complex balance. He says he wants to seal a new trade agreement with China, but at the same time defends that tariffs, which are taxes on imports, are positive for the US economy. In the short term, it has surprisingly reduced the US trade deficit. with respect to China, which has fallen by 16.2% in one month to settle at 20.7 billion dollars (18,400 million euros), its minimum in five years. Politicians and entrepreneurs, however, warn of negative consequences in the medium and long term.
Opponents of the president ahead of the presidential elections of 2020 have begun to use commercial war as electoral ammunition. Former Vice President Joe Biden said in an interview on the WMUR radio network that tariffs "are killing workers and American peasants." And it's not just the Democrats. Sen. John Cornyn, a Republican from Texas, called the policy "inadequate" and conservative Chuck Grassley of Iowa accused Trump of "deafness" and "ignorance" in this problem.
At the suggestion of the president, who is not entirely unaware of the implications of this trade conflict, his government has begun to prepare a package of aid to the field, such as the one authorized last year worth 12,000 million dollars. Republicans believe that this year will increase that figure to at least 15,000 million. The problem has ramifications that have frightened the markets, which register losses in chains since the negotiation between China and the US failed last week.
The employers warn that inflation will rise, because tariffs of 25% on products such as furniture, appliances or toys have to translate into an increase in prices. In addition, the tariffs approved by China in retaliation begin to affect farmers, farmers and fishermen who depend to a large extent on the Asian market.
An ace in the sleeve
Trump will meet next month with his Chinese counterpart Xi Jinping at a bilateral summit on the margins of the G-20 meeting in Japan. That's the ace in the president's sleeve: save the crisis with a deal of those who like so much sealed face to face at the last moment. "Our negotiation is going well, it is going to continue, but we must make sure that the deal is good for us, because we do not want to remain the losers in the trade," Trump said.
On Tuesday, the retail employers' association – the Retail Industry Leaders Association – warned the White House that taxing all Chinese imports, as planned, "poses a threat to the entire economy, because the prices of all items will rise". Trump is willing to extend tariffs of 25% to all products manufactured in China to cover the equivalent of about 375,000 million dollars. That will be, however, if the negotiations fail. The new tariffs are in force since last Friday and the products purchased with those higher prices will not reach US ports until at least next month. (tagsToTranslate) trump (t) china