Trump drops his decision to back down on trade tariffs against China

Today, on July 2, President Donald Trump has decided to rule out backing down on import tariffs against China. He has also threatened to impose up to US$ 500 billion worth of Chinese goods in case the two countries could not strike a fair deal sooner or later. But a couple of days before, the President had a different plan altogether, as he had decided to back down China from such hard-hitting policy. This could at least diffuse trade tensions between the US and China, even if temporary.

The White House has already imposed 25 per cent tariff on US$ 50 billion worth of Chinese goods including industrially significant technologies with the aim to escalate the trade war between the world’s two largest economies.

In response to China’s decision to levy heavy duties on 545 American products worth of US$ 34 billion, Trump warned Beijing in mid-June to slap tariffs on additional US$ 200 billion worth of Chinese goods.

"The tariffs, in fact, could go up to US$ 500 billion, frankly, if we don't make a deal. And they want to make a deal," the President told Fox News yesterday.

He further said, "I will tell you, China wants to make a deal, and so do I, but it's got to be a fair deal for this country."

The goal is to make it harder for China to acquire important technology used for manufacturing things like robotics, aerospace and aviation equipment, clean energy cars, and medical equipment. Experts say China currently buy technology from the US to develop its own manufacturing capacities.