President Donald Trump continues sabre rattling on the trade war front
President Donald Trump continues sabre rattling on the trade war front, threatening more tariffs on China while defending the tariffs his administration has put into place globally, while the Chinese are allegedly avoiding tariffs on some goods by way of Vietnam.
According to USA Today: “Vietnamese officials say China is intentionally mislabeling its products as ‘Made in Vietnam’ to avoid American tariffs, and have ordered offices to more aggressively examine products’ certificates of origin.”
The report claims China exports certain goods to Vietnam, then repackaging them before export to the US and EU. Foreign Minister Pham Binh Minh told the Vietnamese National Assembly last week: “It will sabotage Vietnamese brands and products and it will also affect consumers. We could even get tariff retribution from other countries, and if that happens, it will hurt our economy.”
Calling tariffs, a ‘beautiful thing’ and asserting that a trade deal with China was close because of his aggressive policies, Trump told CNBC’s Squawk Box: “Without tariffs, we would be captive to every country, and we have been for many years… We lose a fortune with virtually every country. They take advantage of us in every way possible, and the US Chamber is right there with them.”
Trump added that “the China deal’s going to work out.”
According to the New York Times, Trump also said his threat of tariffs on Mexico showed that his approach was working and would ultimately convince China to agree to America’s trade demands.
Curing the CNBC interview, the President said that if Chinese President Xi Jinping “doesn’t meet with him at the upcoming Group of 20 summit in Osaka, Japan, this month, additional tariffs will go into effect.”
The Washington Post reports that Geng Shuang, a spokesman for China’s Ministry of Foreign Affairs, said: “We do not want a trade war, but we are not afraid of fighting one. If the US is ready to have equal consultations, our door is wide open. But if it insists on escalating trade frictions, we will respond to it with resolution and perseverance.”