President Donald Trump declared on Friday Aug. 23 for American companies “to immediately start looking” for alternatives to operating in China, hours after Beijing announced new trade sanctions on $75 billion in U.S. goods. President Trump said due to China’s unfair trade practices they were pushing for a deal that would re-balance the relationship in favor of U.S. manufacturers and workers. The president took to Twitter Friday evening to respond to the issue.
“For many years China (and many other countries) has been taking advantage of the United States on Trade, Intellectual Property Theft, and much more. Our Country has been losing hundreds of billions of dollars a year to China, with no end in sight. Sadly, past Administrations have allowed China to get so far ahead of Fair and Balanced Trade that it has become a great burden to the American Taxpayer.
Also saying “As President, I can no longer allow this to happen!”
The president also said, “In the spirit of achieving Fair Trade, we must balance this very unfair Trading Relationship. China should not have put new Tariffs on 75 billion dollars of United States product (politically motivated!).” Trump tweeted.
Starting on Oct. 1, the $250 billion of goods and products from China, currently being taxed at 25%, will be taxed at 30%. He also said the remaining $300 billion of goods and products from China, that was being taxed from Sept. 1 at 10%, will now be taxed at 15%.
The president said this is a great opportunity for the United States. Trump also ordered Fed Ex, Amazon, UPS and the Post Office, to search for and refuse all deliveries of Fentanyl from China or any other country. As the president points out again and again, fentanyl kills 100,000 Americans a year. Chairman Xi Jinping said this would stop, however it didn’t.
“Our Country has lost, stupidly, Trillions of Dollars with China over many years. They have stolen our Intellectual Property at a rate of Hundreds of Billions of Dollars a year, & they want to continue…The vast amounts of money made and stolen by China from the United States, year after year, for decades, will and must stop,” President Trump said. He urged U.S. companies to look for manufacturing alternatives to China.
Wall Street took a dive after Trumps announcement. The Dow Jones industrials sank 623 points, or 2.4%. Bond prices soared, sending yields lower. The yield on the 10 year Treasury fell to 1.52%. Apple dropped 4.6%. The S&P 500 fell 75 points, or 2.6%, to 2,847. The Nasdaq dropped 239 points, or 3%, to 7,751.