Trump Escalates US-China Trade War With More Tariffs, Warns Declaring 'National Emergency'

Adding more punch to the U.S trade war with China, President Donald Trump warned that he would not hesitate to declare the escalating U.S.-China trade war as a national emergency.

The significant Trump news on the trade war emergency was hinted at the G-7 Summit in France. Trump also explained why the U.S is so miffed with China at the trade front and how the situation is becoming ripe for an emergency.

Speaking at the G-7 leaders meeting in Biarritz, France, the U.S President said: “I could declare a national emergency, I think when they steal and take out and intellectual property theft anywhere from $300 billion to $500 billion a year and when we have a total loss of almost a trillion dollars a year for many years.”

However, Trump made clear there is no plan right now to call for a national emergency.

The new flare-up on China trade war came last Friday when China announced additional duties on $75 billion worth of American goods on Sept. 1 and Dec. 15 as retaliatory tariffs.

Trump responded by tweeting his administration would also raise tariffs on $550 billion of Chinese imports.

Trump said he would raise duties on $250 billion worth Chinese products to 30 percent from 25 percent on Oct. 1.

Also, the tariffs planned on $300 billion of Chinese goods, from Sept. 1 now be increased to 15 percent instead of the previous 10 percent.

Trade war bringing money from China

Noting that Trump tariffs are bringing a lot of money from China as tariffs, the U.S President said despite trade tensions the U.S still interacts with China and “getting along very well.”

“I’m getting a lot of money in tariffs; it is coming in by the billions. We’ve never gotten 10 cents from China, so we will see what happens.”

Trump also said China is more interest in clinching a trade deal with the U.S.

No pressure to end the trade war

The President also refuted reports that leaders on the G-7 forum or U.S. allies sought to put pressure the U.S. to end the trade war with China.

“I think they respect the trade war, it has to happen. I can’t say from the standpoint of the United States what Chin has done is outrageous that presidents and administrations allowed them to get away with taking hundreds of billions of dollars out every year and putting it into China,” Trump said.

According to the President, the U.S is doing well, “we had horrible trade deals and I’m straightening them out. The biggest one by far is China,” Trump added.

China trying to take advantage of the trade war

Meanwhile, a CNBC report, quoting a Chinese trade expert said, despite rising trade tensions and Trump‘s call to American companies to quit China, the situation will only support Chinese companies with more opportunities.

The China news says contrary to perceptions, Chinese companies are trying to adapt to the trade war era and trying to breed new opportunities.

Although Trump tariffs would pressure Chinese companies in the interim in addition to the challenges from a slowing domestic economy, they will reinvent, said Wei Jianguo, a Chinese policy expert and former vice minister at the Ministry of Commerce.

Data and analysis already indicate businesses in the mainland are trying to stay resilient even by absorbing the costs of tariffs.

“I’m convinced the China-U.S. trade tensions is a long-term situation,” said Wei Jianguo while speaking to CNBC.

The Chinese side has prepared well to counter any negative impact from trade tensions. Noting that China is not afraid of hiked tariffs, Wei, also the vice-chairman of think tank “China Center for International Economic Exchanges” said the four plank approach of China will take care of its trade growth.

· Increasing government support

· Opening new international markets through free trade zones and Belt and Road Initiatives.

· Offering a high-quality operating environment for state-owned and foreign enterprises

· Implementing policies such as tax incentives and fee cuts.