The White House has released a statement on Tuesday regarding the Trade War with China.
The Trump administration stressed Tuesday that China “has a lot more to lose” in the ongoing trade spat between Washington and Beijing.
President Donald Trump, in accordance with the provisions of Section 301 of the Trade Act of 1974, imposed steep tariffs of 25 percent on critical Chinese products worth an estimated $50 billion annually on Friday, leading China to return fire with reciprocal tariffs on American goods. Troubled by China’s reaction, the president announced Monday that he has directed the Office of the U.S. Trade Representative to “identify $200 billion worth of Chinese goods for additional tariffs at a rate of 10 percent.”
Beijing accused the U.S. Tuesday of initiating a trade war. “This is a trade dispute, nothing more, nothing less,” White House trade adviser Peter Navarro explained in an on-the-record briefing, countering Beijing’s assertions. China “underestimated the strong resolve of Donald J. Trump,” who is determined to “have the back of Americans” and combat serious Chinese “economic aggression.”
“China has more to lose. They have a choice to make,” Navarro said Tuesday. “The numbers speak for themselves. Do the math.” The U.S. exported goods worth only $129.69 billion to China in 2017 while importing a substantial $505.47 billion of Chinese goods. Retaliatory Chinese tariffs would be limited by the trade imbalance between China and the U.S., forcing Beijing to turn to non-tariff measures should it desire to escalate.
For instance, China could decide to create procedural and regulatory roadblocks for U.S. products entering the country, limit access for American businesses, throttle deals and acquisitions, manipulate its currency or even boycott American products. More severe measures, as Reuters noted, could include the weaponization of U.S. treasury holdings or an embargo on American goods.
“In a serious economic battle, the U.S. wins. There is no question about it,” Derek Scissors, a resident scholar at the American Enterprise Institute (AEI), told The Washington Post in April, when the trade dispute between China and the U.S. was just starting to heat up. China, however, argues it has the stamina, political stability and resolve to win a trade war, asserting the U.S. has far more to lose.
What are your thoughts? Do you agree with the White House? Are we going to win a trade war with China? Please share and comment with your opinions.