Washington: US President Donald Trump defended China's tough trade policy on Saturday (August 3), saying that the tariffs he imposed are bringing "billions of dollars" from the Beijing government.
Trump wrote on Twitter: "Things have a very good relationship with China. They pay us billions of dollars, which can keep their systems running through their currency depreciation and large amounts of cash."
Trump often argues that tariffs on Chinese goods are paid by China, in fact they are paid by intermediaries of US importers and, in most cases, ultimately by American consumers who purchase these goods.
Trump also said that other countries are worried about being punished by US taxation like China and are calling for a trade agreement with the United States.
“Everyone wants to negotiate a real trade agreement with us, not a unilateral terrorist program that the government has done in the past. They don’t want to be a US tariff target.” Trump published a tweet on Twitter, but did not say Which countries want such an agreement.
On Thursday, Trump announced plans to impose tariffs on another $300 billion of Chinese goods in September. The threat has shaken the global stock market.
Trump announced the news one day after the US and Chinese trade negotiators resumed talks aimed at ending a year-long dispute.
The new plan means that almost all of the $660 billion annual two-way trade between the world's two largest economies will impose tariffs on them.
China threatened to retaliate on Friday. It has imposed tariffs on US$110 billion in US goods, and almost all products are imported from the United States.
Chinese Foreign Minister Wang Yi said on Friday that "the suppression of tariffs is definitely not a constructive way to resolve economic and trade frictions. This is not the right way."
After resuming face-to-face talks in Shanghai this week, trade negotiators will meet again in Washington in early September for another round of discussions, which means they will be carried out after the new tariffs become effective.