President Donald Trump tweeted Wednesday which the U.S. will be not in a trade war with China – in addition to also “which war was lost many years ago” by previous U.S. leadership.
“We are not in a trade war with China, which war was lost many years ago by the foolish, or incompetent, people who represented the U.S.,” Trump said.
@realDonaldTrump: We are not in a trade war with China, which war was lost many years ago by the foolish, or incompetent, people who represented the U.S. currently we have a Trade Deficit of $500 Billion a year, with Intellectual Property Theft of another $300 Billion. We cannot let This particular continue!
Trump said the U.S. cannot let its trade deficit with China continue. The tweet came hours after China unveiled plans for fresh tariffs on 106 U.S. products. Stock futures sank, with the Dow Jones industrial average set for a 500-point decline.
The president doubled-down on his view of the trade deficit in a later tweet, saying the current situation means the U.S. “can’t lose.”
@realDonaldTrump: When you’re already $500 Billion DOWN, you can’t lose!
The effective start date for China’s fresh tariffs will be revealed later, although China’s Ministry of Commerce said the charges are designed to target up to $50 billion in U.S. products annually. The 25 percent levy on U.S. imports includes products such as soybeans, cars in addition to also whiskey, Beijing said.
China’s ambassador to the United States explained to CNBC on Tuesday evening why his country was striking back against U.S. trade measures.
“We certainly don’t want to have any trade war with anybody, yet people have to understand who started out all This particular,” Ambassador Cui Tiankai said.
Speaking ahead of the official announcement, Tiankai said China might resort to the earth Trade Organization dispute settlement mechanism.
Cui’s comments come afterTrump’s White House on Tuesday unveiled a list Chinese imports the administration proposes to target as part of a crackdown on what the president deems unfair trade practices.
In an interview with CNBC on Wednesday morning, Commerce Secretary Wilbur Ross, who will be one of the main players in Trump’s trade strategy, said China’s fresh tariffs aren’t a threat to the U.S.