China-US Trade Tensions: Trump threatens to levy tariffs on all Chinese goods

World
Europe

01:48

US President Donald Trump says he's ready to go all the way on tariffs, his latest threat to China in a trade war between the world's two biggest economies. It would amount to a tax on virtually all of China's exports to the US. Owen Fairclough has more.

First 34 billion dollar worth of goods, soon to be upped to 50. Now in an interview with CNBC, Donald Trump says he is out to hit China with tariffs on 500 billion dollars of its exports to the US.

OWEN FAIRCLOUGH WASHINGTON "That will place a huge tax on almost the entire value of Chinese exports to the US. Trump wants to ramp up those duties in retaliation for what he calls unfair Chinese trade practices, that he blames for widening the US trade deficit with China, that's the US buying far more from China that it sells."

The Trump administration says deficits harm the economy, even if the US is enjoying some of the best-sustained growth in years. China, denying US claims, has hit back with tariffs on the most valuable American exports, including soybeans and cars, and it's done a few numbers of its own.

HUA CHUNYING SPOKESPERSON, CHINESE FOREIGN MINISTRY "China is the biggest consumer market for the U.S. Apple Inc and General Motors. For Qualcomm Incorporated, 58 percent of its revenue comes from its sales in China. If China exports clothing worth 450 US dollars to the United States, the Chinese and the US side will earn 5 percent and 84 percent of the profit respectively."

These two interdependent economies have yet to resume trade negotiations, while US retailers warn consumers will ultimately bear the brunt of higher prices. OF, CGTN, Washington.