“Continued uncertainty for U.S. businesses and consumers is a drag on the economy,” he said. “What we really need is an effective strategy to address China’s unfair trade practices by working with our allies instead of using unilateral tariffs that cost American jobs and hurt consumers.”
U.S-China Call
Chinese Vice Premier Liu He talked with USTR Robert Lighthizer and Treasury Secretary Steven Mnuchin by phone on Tuesday, according to a statement posted on the Ministry of Commerce website. Another conference call is planned again in two weeks.
The tariff announcement came shortly after President Donald Trump insisted again that his levies were not causing higher prices for American consumers and that China was bearing the cost of them. Economists and businesses have disputed that last point.
Rick Helfenbein, president and CEO of the American Apparel & Footwear Association, called the tariffs -- even with a delay -- “a destructive plan.”
“Make no mistake, these tariffs, including the ones imposed in earlier tranches, are paid by U.S. companies. They create costs and uncertainty, forcing companies to delay or scuttle hiring and investment decisions and ultimately hit the U.S. consumer,” he said. “Rebalancing our trade partnership with China is of critical importance, but taxing U.S. companies, U.S. consumers, and the U.S. economy is not the way to achieve that goal.”
The International Monetary Fund last month cited trade tensions as one of the biggest risks to the global economy as it downgraded its 2019 growth forecast, while Goldman Sachs has said there’s growing concerns that the trade war will trigger a U.S. recession. A Bloomberg News August survey of economists gave a 35% probability of a recession in the next 12 months, up from 31% previously.
Trump’s announcement about the new duties ended a tentative trade truce that he forged with Chinese President Xi Jinping at the end of June in Japan, just as the two sides were resuming negotiations. In the past week tensions have escalated further as the U.S. Treasury Department formally labeled China a currency manipulator.
This story provided by Bloomberg News.