TRANSCRIPT:
Donald Trump has remained firm on his plan to impose tariffs on almost every country in the world.
"It's an amazing thing. This has been... something used against us for many years by other countries, China in particular, but others, not just China, others, and taken advantage of us, ripped us off, and left us for dead, frankly. And I believe if I didn't become your president, I believe that this country would have had problems like they've never had before."
Now, after U-S stocks fell for a fourth straight trading day on Tuesday, Mr Trump has announced that a 104 per cent tariff on Chinese imports will take effect on Wednesday.
China was already set to see U-S tariffs increase by an additional 34 per cent, under the Trump administration's latest tariff package.
But after Beijing China announced it would match the tariffs with a 34 per cent tariff on U-S imports to China, Mr Trump hit back, adding another 50 per cent.
Chinese Foreign Ministry spokesperson Lin Jian says the U-S is trying to blackmail China.
“Chinese people do not provoke trouble, nor are they afraid of it. Pressure, threats, and blackmail are not the right ways to deal with China. China will surely take necessary measures to resolutely safeguard its legitimate rights and interests. If the US disregards the interests of both countries and the international community and insists on engaging in a tariff war and trade war, China will fight to the end.”
White House Press Secretary Karoline Leavitt says when China wants to negotiate, the president will be gracious.
"It was a mistake for China to retaliate. The president when America is punched, he punches back harder. That's why there will be 104% tariffs going into effect on China tonight at midnight. But the president believes that Xi and China want to make a deal. They just don't know how to get that started. And the president also wanted me to tell all of you that if China reaches out to make a deal, he'll be incredibly gracious. But he's going to do what's best for the American people."
Last year [[2024]], China was the second largest source of imports in the United States, shipping a total of $439 billion U-S dollars worth of goods to the country.
The United States meanwhile, exported $144 billion U-S dollars worth of goods to China.
That left the U-S with a $295 billion trade deficit, around 1 per cent of the U-S economy.
While still a considerable deficit, it is significantly less than the $1 trillion deficit claimed by the President.
U-S trade representative Jamieson Greer says China has to come to the table with more understanding.
"I see a distinct difference between those countries who have come to us and have said 'We understand your issues, we understand the deficit, we understand your desire for reciprocity, and we want to work with you on this. And the Chinese approach, which has been 'We're going to retaliate.'"
U-S officials say over 70 nations have approached the administration for talks on possible negotiations.
That includes close allies and trading partners, South Korea and Japan, which the administration says it has scheduled talks with.
The Trump administration says it will consider 'tailored', country specific deals with trading partners who are willing to adjust their own barriers.
Meanwhile, as economists warn of the growing risks of recession, polling from Reuters has found that three in four Americans are expecting costs to go up.
Among the top imports from China to the U-S are electronics, computers, toys, and batteries.
But some retailers in the United States say they are delaying orders and holding off on hiring in light of the tariffs on China.
According to the American Apparel and Footwear Association, about 97 per cent of the clothes and shoes purchased in the US are imported, predominantly from Asia.
With a 46 per cent tariff placed on Vietnam, a major producer of athletic shoes, a pair of sneakers that previously cost $155 dollars will now cost American consumers $220.
According to Donald Trump, the U-S is already taking in almost $2 billion a day from the tariffs.
"We're taking in almost $2 billion a day in tariffs. $2 billion a day, and we're doing very well. (applause) And we're doing very well in making I call them tailored deals not off the rack, these are tailored, highly tailored deals. Right now Japan is flying here to make a deal. South Korea is flying here to make it deal and others are flying here."
Jamieson Greer has also said it's about the long term gains.
"We must move away from an economy that's based solely on government spending in the financial sector, and we must become an economy based on producing real goods and services that provide jobs for working class and middle class Americans in their communities. This adjustment may be challenging at times, and in a moment of drastic overdue change, I'm confident, I'm certain that the American people can rise to the challenges they've done before."
Yet lawmakers, including some Republicans, are expressing some doubts over the president's tariff policy.
Democratic Senator Ron Wyden says that Congress has given the executive branch too much power over international trade.
"What is the plan? In the last week, the White House has been all over the map when it comes to this question. There is no clear message of how the tariffs were determined, what they're supposed to accomplish, how long they'll be in place, whether they're a negotiating tool or a move to try and cut the United States off from global trade and usher in a new era of 1870s-style protectionism."
Republican Senator Thom Tillis says it seems the U-S has decided to begin a trade war on all fronts.
"So if you own this decision, then I'll look to you to figure out if we're gonna be successful. If you don't own the decision, I'm just trying to figure out whose throat I get to choke if it's wrong, and who I put up on a platform and thank them for the novel approach that was successful, if they're right."
David Firestein is a former diplomat and the president and C-E-O of the George H. W. Bush Foundation for U-S-China Relations.
He says the controversial trade measures will cause serious upheaval in the world trading system.
"It essentially ends the world trading system as we know it. It essentially ends the construct of globalization, which is predicated on the idea of 'comparative advantage' and that each country should do what it is relatively best at doing and produce what it is relatively the best at producing compared to the various other players of the economy. Trump's entire approach seems to fail to recognise that there exists a concept or a construct called 'comparative advantage', and it brings an end to the very notion of globalisation."
