Trump threatened to put 200% tariff to China
US President Donald Trump has given a big statement about China. He said that the relationship between America and China may be better, but if the situation worsens, then the US has such options that can completely ruin China. However, Trump also made it clear that his intention is not to do anything like this. They want the situation to be peaceful and there is a balance in the trade between the two countries. Trump made this statement before meeting South Korean President Lee J Monga at Washington’s Oval Office. He said that America is in a much stronger position than China in this business dispute.
Rare Earth Warning on Magnet
According to a report by Money Control, Trump also gave a strict reaction to China’s “Rare Earth” policy. He said that if China stops the supply of necessary magnets to the US, then the US may be forced to impose tariffs (import duty) on these 200%. It is worth noting that these magnets are used in high-tech industry, defense equipment and electronic goods. America is largely dependent on China for this supply. In such a situation, increasing tariffs are not only an attempt to put a business pressure on China, but it is also considered a strategic step.
Trump can visit China
Donald Trump said that he has recently interacted with Chinese President Xi Jinping and the dialogue between the two countries is going on continuously. He also told that it is possible that he should visit China soon. Trump said, “We will create a great relationship with China. They have some options, we have excellent options. But I do not want to use them. If used, it will completely ruin China.” However, Trump did not clear whether these options are economic, political or any other strategy.
America wants China to reduce exports
At the same time, American Treasury Secretary Scott Besant has said that China’s oil trade with countries that are banned, especially Iran and Russia, are a matter of concern for America. During an international meeting in Sweden, he said that the US wants China not to dominate its manufacturing and play a more responsible role as a global importer. Besant believes that if China will balance in its role, then the global business environment can be more stable.
Signal signs of softening in business conflict
During Trump’s second term, the US increased the tariff on Chinese goods by 145% in April. But later there was some softness in it and the tariff was reduced to 30% on most things. In response, China continued 10% tariff on American goods and imposed strict restrictions on export of rare economy in April. After this, the attitude of the US administration also became a bit soft. The two countries decided to reduce mutual trading tension for 90 days in August to try to find a solution from the dialogue.