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Trade Deal May Be ‘Far Worse’ After 2020, U.S. President Donald Trump Warns China

While supporters laud Trump as a tough negotiator, free-trade-minded Republicans have warned that the tariffs could do real damage to the economy, and many farmers, including Trump supporters, say the tariffs have hit their bottom line.

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The Yang Ming shipping line container ship Ym Utmost is unloaded at the Port of Oakland, July 2, 2018, in Oakland, Calif. VOA

President Donald Trump warned China Saturday that it should strike a trade deal with the United States now, otherwise an agreement would be “far worse for them if it has to be negotiated in my second term.”

Washington and Beijing are locked in a trade battle that has seen mounting tariffs, sparking fears the dispute will damage the global economy.

Two days of talks ended Friday with no deal. China’s top negotiator said the two sides would meet again in Beijing at an unspecified date, but warned that China would make no concessions on “important principles.”

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Only a week earlier, the United States and China had seemed poised to complete a sweeping agreement. VOA

Accusations and higher tariffs

Trump had accused Beijing of reneging on its commitments in trade talks and ordered new punitive duties, which took effect Friday, on $200 billion worth of Chinese imports, raising them to 25 percent from 10 percent.

He then cranked up the heat further, ordering a tariff hike on almost all remaining imports — $300 billion worth, according to US Trade Representative Robert Lighthizer — from the world’s second-biggest economy.

Those tariffs would not take effect for months, after a period of public comment.

Trump also said Saturday that firms could easily avoid additional costs by producing goods in the United States.

“Such an easy way to avoid Tariffs? Make or produce your goods and products in the good old USA. It’s very simple!” he tweeted, echoing a similar message he sent Friday, and even retweeted.

Poised for a deal

Only a week earlier, the United States and China had seemed poised to complete a sweeping agreement.

Washington wants Beijing to tighten its intellectual property protections, cut its subsidies to state-owned firms and reduce the yawning trade deficit; China wants an end to tariffs as part of a “balanced” deal.

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Trump also said Saturday that firms could easily avoid additional costs by producing goods in the United States. VOA

While supporters laud Trump as a tough negotiator, free-trade-minded Republicans have warned that the tariffs could do real damage to the economy, and many farmers, including Trump supporters, say the tariffs have hit their bottom line.

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As the trade war spread, China imposed $110 billion in duties on farm exports and other US goods.

Republican Senator Chuck Grassley, from the farm state of Iowa, cautiously welcomed the new tariffs but urged negotiators to reach a quick solution “so we can avoid prolonged tariffs, which we know have an impact on the US economy.” (VOA)

Next Story

US Warships Pass Through Taiwan Strait, China Rebukes

Beijing views any ships passing through the strait as essentially breaching its sovereignty

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US Warships, Taiwan Strait
The ships' transit through the Taiwan Strait demonstrates the US commitment to a free and open Indo-Pacific. Pixabay

China said Thursday it had lodged a protest with Washington after two US warships sailed through the Taiwan Strait amid rising tensions between the two powers.

The US Navy said the USS Preble, a destroyer, and USNS Walter S. Diehl, a supply ship, conducted a routine transit “in accordance with international law” on Wednesday.

“The ships’ transit through the Taiwan Strait demonstrates the US commitment to a free and open Indo-Pacific,” the navy said. “The US Navy will continue to fly, sail and operate anywhere international law allows.”

US warships periodically conduct “freedom of navigation” exercises in the narrow waterway separating the Chinese mainland and Taiwan, triggering angry responses from Beijing every time.

US Warships, Taiwan Strait

China said Thursday it had lodged a protest with Washington after two US warships sailed. Pixabay

Beijing views any ships passing through the strait as essentially breaching its sovereignty, while the US and many other nations view the route as international waters open to all.

“We have lodged solemn representations with the US,” Chinese foreign ministry spokesman Lu Kang said at a regular press briefing.

The sail-by comes on top of tensions between the United States and China over trade and US efforts to thwart Chinese telecom giant Huawei over security concerns.

The transit also comes as the US, Japan, South Korea and Australia kicked off operation “Pacific Vanguard” near Guam, bringing together more than 3,000 sailors from the four countries.

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Drills will focus on “live fire exercises, defensive counter-air operations, anti-submarine warfare, and replenishment at sea,” the US 7th Fleet said.

In April, Beijing said its navy warned off a French warship that had entered the Taiwan Strait and lodged an official complaint with Paris.

China sees Taiwan as part of its territory to be reunified, despite the two sides being ruled separately since the end of a civil war on the mainland in 1949.

The US diplomatically recognizes China over Taiwan, but remains the island’s chief military ally and arms supplier.

US Warships, Taiwan Strait
China sees Taiwan as part of its territory to be reunified. VOA

For the Guam naval drills, Australia has contributed two frigates, Japan two destroyers and South Korea one destroyer. The USS Blue Ridge, the 7th Fleet’s flagship, will lead the operation from the US side.

Home to more than 160,000 people, Guam was at the center of nuclear tensions between Washington and Pyongyang in 2017, with North Korea threatening to hit the US territory with “enveloping fire.” (VOA)