How Will Trump’s Latest Trade War Threat Affect the G20 Summit?

Footwear News

Tue, November 27, 2018 at 2:30 PM UTC

Hopes of a trade deal between the United States and China were dashed following President Donald Trump’s latest threat to impose even more tariffs on Chinese imports.

In an interview with the Wall Street Journal published Monday, Trump reinforced an earlier warning, saying he was prepared to slap on yet another round of tariffs if he and Chinese President Xi Jinping failed to broker a deal.

“If we don’t make a deal, then I’m going to put the $267 billion additional [tariffs] on,” Trump said. As with previously announced tariffs, this potential new round of tariffs would be imposed at a rate of either 10 percent or 25 percent.

The comments come just days before the two world leaders are expected to meet at the G20 summit in Buenos Aires, Argentina, which kicks off on Friday.

He added that, come January, it was “highly unlikely” he would accept any Chinese offer that would delay a previously decided increase in tariffs from 10 percent to 25 percent on more than $200 billion worth of goods.

The U.S. has already placed tariffs on $250 billion in Chinese goods, while Beijing has retaliated with levies on $110 billion in American imports. If Trump makes good on his latest threat, the total amount of tariffs on goods from China would hit $517 billion.

He also said that he might enforce a 10 percent tariff on iPhones, MacBooks and other Apple products imported from China. (Apple is currently not subject to Trump’s tariffs.)

“Maybe. Depends on what the rate is,” he said. “I mean, I can make it 10 percent, and people could stand that very easily.”

Following Trump’s remarks, U.S. stock index futures dipped ahead of Tuesday’s market open.

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