United States President Donald Trump said on Thursday that the U.S. is prepared to place additional tariffs on Chinese goods equalling more than $100 billion. Many fear that Trump’s statements can only serve to exacerbate an already tenuous situation with Beijing that could end in an all-out trade war.
President Trump expressed that he was responding to what he considers to be “unfair retaliation” from China after Beijing released a statement on Wednesday detailing $50 billion in tariffs to be placed on American imports into China. The move by the Chinese government was in direct response to $50 billion dollars in tariffs on Chinese goods announced by the Trump administration the day before.
Trump went on to express disappointment at the fact that instead of choosing to ‘remedy its misconduct,’ the Chinese government instead chose to take measures that would cause harm to American farmers and manufacturing companies.
The doubling down by Trump comes on the heels of an attempt by his advisors to calm fears of a looming trade war between the world’s two largest economic powers by characterizing the tariff threats made by both nations to be simply the beginning of negotiations.
Financial analysts believe the move by Trump to be a dangerous ploy on the part of the president aiming to back China down and cause Beijing to become compliant with changes America wants to see in regards to Chinese business practices.
The announcement made by Trump drew immediate criticism from politicians, retailers, and manufacturers representing states that depend on agriculture to fuel their economies.