SOURCE :- THE AGE NEWS
Washington: The US-China trade war escalated as President Donald Trump threatened drastically higher tariffs on Chinese goods, while giving his strongest signal to date that he will lower tariffs on countries that agree to remove their own trade barriers.
US politicians also continued to single out Australian beef as a key trade grievance, in comments that suggest biosecurity concerns will need to be on the table if Australia is to strike a deal in future talks.
President Donald Trump upon arrival at the White House following his weekend in Florida.Credit: nnaKCampbell
Trump said he would whack an additional 50 per cent levy on Chinese imports – taking the stacked total to more than 100 per cent – from April 9 unless Beijing reversed its decision to match his 34 per cent tariff from last week with equivalent import duties on US products.
“Additionally, all talks with China concerning their requested meetings with us will be terminated,” Trump said. “Negotiations with other countries, which have also requested meetings, will begin taking place immediately.”
Choppy financial markets hung on every development and were briefly up in US morning trade after a rumour the Trump administration was going to implement a 90-day pause on its controversial tariff program that has sent stock markets around the world into a rout not seen since the COVID-19 pandemic.
The White House quickly scotched the rumour as “fake news”. But Trump and his advisers indicated a greater willingness to negotiate with foreign leaders to start winding back the tariff blitz, possibly starting with Israel. Prime Minister Benjamin Netanyahu was scheduled to meet with Trump on Monday (Tuesday AEDT).
National Economic Council director Kevin Hassett said more than 50 countries had asked to begin trade talks. Trump said he spoke to Japanese Prime Minister Shigeru Ishiba, who would send a negotiating team to the US.
“Countries from all over the world are talking to us. Tough but fair parameters are being set,” Trump posted on TruthSocial. “It all has to change, but especially with CHINA!!!”
Japan, a key US ally in the Pacific and top trading partner, was whacked with a 24 per cent tariff. Ishiba said he told Trump this was disappointing as Japan “has been the biggest investor in the United States for five straight years and the tariff policies could hurt Japanese companies’ investment capabilities”.
Trump implored investors not to panic and urged nervous Republicans to be patient, posting “Don’t be a PANICAN (A new party based on Weak and Stupid people!)”
On Fox News, Republican Senator John Barrasso from the cattle state of Wyoming said ranchers were thanking the president for taking action on their long-standing trade grievances against countries such as Australia and Thailand.
“Australia has sold $US29 billion ($48 billion) worth of beef in the United States, and we haven’t been able to sell one hamburger in Australia because of barriers,” Barrasso said. “You look at these numbers, and the ranchers of Wyoming are saying: thank you, Mr President, it is about time.”
Trump broadcast those remarks from his TruthSocial account.
Australia does not strictly ban US beef. Since 2019, American beef can be imported into Australia as long as it is verifiably from cattle born, raised and slaughtered in the US. But the US integrates beef sourced from Mexico or Canada, and wants that included in the deal.
For years, Australian officials have argued the US should implement a certification system that would allow explicitly American beef into Australia.
Prime Minister Anthony Albanese has repeatedly said Australia will not compromise on biosecurity, most recently at weekend rally in Brisbane. Coalition home affairs spokesman James Paterson also said Australia should stand firm.
“We really think it is a self-harming initiative by the United States to put a tariff on Australian high-quality beef,” he told Sky News.
In a note to shareholders on Monday, JPMorgan Chase chief executive Jamie Dimon warned Trump’s tariff agenda would add to a raft of inflationary pressures and increase prices for consumers.
“Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth,” he wrote. “The quicker this issue is resolved, the better because some of the negative effects increase cumulatively over time and would be hard to reverse.”
Dimon said he hoped negotiations would deliver benefits to the US in the long term. “In the short run, I see this as one large additional straw on the camel’s back … My most serious concern is how this will affect America’s long-term economic alliances.”
