President Trump threatens to raise tariffs on Chinese goods if no US-China trade deal is present. The president made the statement in a speech to the Economic Club of New York on Tuesday.
Additionally, President Trump said that China is longing for making a trade as soon as possible. However, the US will sign the deal if and only if it benefits the country.
“If we don’t make a deal, we’re going to substantially raise those tariffs. They’re going to be raised very substantially. And that’s going to be true for other countries that mistreat us too,” he stated.
Despite the statement, he also confirmed that both Washington and Beijing are close to finalize the Phase One deal. If both countries sign the Phase One deal, President Trump believes that it will significantly contribute to the settlement of the US-China trade war.
In the same occasion, the president also mentioned US economic advancement under his administration. Moreover, he commented on China’s economic escalation as the world’s second biggest economy.
“Nobody’s cheated better than China. The theft of American jobs and American wealth is over.”
Also Read: US-China to Eradicate Tariffs if Deal Reached
Global Trade in Jeopardy, Everything Depends on US-China Trade Deal
Global economy and trade are in jeopardy, possibly facing recession as well, and the only hope lies in US-China trade deal. If both parties agree to sign the deal, the excessive tariffs will disappear and trade will gradually recover.
The secretary general of the Organisation for Economic Cooperation and Development (OECD), Angel Gurria, explained the importance the US-China trade deal holds. According to him, the global investment and trade rates highly depend on it.
In its recent report, OECD predicted that the global economy will see its weakest growth in 2019 with the growth of 2.9%. It was smaller than the OECD prediction on May by which the organization predicted 3.2% growth in 2019.
Despite the grave situation, Trump’s latest statement which project the possibility of another tariff escalation did not do any good. Even worse, it fuels up the negativity of the depressing global economy.
“Our narrative is that we’re running at very, very low global growth levels,” said Arend Kapteyn, the global head of Economics and Strategy Research at UBS. “It doesn’t get better for the next three quarters and actually we’re going to hit a bit of an air pocket in the first half of next year because we’re still seeing these existing tariffs feeding themselves into the data.”
