China-US Tariffs: Beijing strikes back with plans for tariffs on US goods
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China's levy on American goods seems to have caught the US by surprise. And there are currently different voices from the White House concerning what Washington should do next. CGTN's Nathan King has more.
U.S. president Donald Trump has previously said it's easy to win a trade war. Well, he woke up to the news that China had responded to proposed U.S. tariffs with a list of its own, targeting key U.S. exports like cars planes and soybeans. The U.S. President took to Twitter and in reference to the U.S. trade deficit with China exclaimed: When you're already $500 Billion DOWN, you can't lose! His spokesperson also seemed to say the U.S. was ready to impose tariffs even if some U.S. businesses suffered.
SARAH SANDERS WHITE HOUSE PRESS SECRETARY "We may have a little bit of short-term pain, but we're certainly going to have long-term success. And, we're focused on long-term economic principles, and making sure we have a strong and stable economy that's exactly what the president is doing."
But other officials indicate that Trump's tough talk could be posturing. The incoming White House economic adviser Larry Kudlow says it's possible that the tariffs won't go into effect.
LARRY KUDLOW DIRECTOR, US NATIONAL ECONOMIC COUNCIL  REPORTER: "Is it possible that these stiff new tariffs against China are, in fact, a negotiating tactic and won't go into effect?" KUDLOW: "Yes, it's possible. It's part of the process. I mean, I would take the President seriously on this. You know, there are carrots and sticks in life. But he is, ultimately, a free trader. He said that to me. He said it publicly. So, he wants to solve this with the least amount of pain. And, again, here's the key point: both sides benefit by positive solutions that lower barriers and open markets."
The planned U.S. tariffs - that could harvest an extra $12.5 billion dollars from Chinese imports - won't be imposed right away. There's a public comment period and a government hearing. China hasn't announced a date for its tariffs yet. That leaves room to maneuver.
NATHAN KING WASHINGTON "Here at the White House there is a sense of surprise that China responded so quickly and strongly-and is potentially willing to hit key U.S. exports like planes, cars and soybeans. China says it doesn't want a trade war and no-one can win one. The U.S. President still seems to think trade wars are winnable. Many economists and U.S. businesses say they hope China and the U.S. don't put either theory to test. Nathan King, CGTN WASHINGTON DC."