China's trade surplus with US hits record $31 billion in August

Sep 11, 2018, 01:12
China's trade surplus with US hits record $31 billion in August

The administration will act on the $200 billion "very soon depending on what happens", Trump told reporters on Air Force One.

Meanwhile, Chinese state media have been pushing propaganda that Trump's trade war is aimed at containing China's rise.

The US imported $505bn in goods from China last year, and this year until the end of July, Chinese imports are almost 9% higher, according to official US data.

"To a certain extent, it's going to be up to China", the president said Friday.

If both sets of tariffs go ahead it would mean virtually all of China's USA exports would be subject to new duties.

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On Friday, Mr Trump said there could be US$267 billion more.

China's trade surplus with the United States widened to a record $31 billion in August as exports surged despite American tariff hikes, potentially adding fuel to President Donald Trump's battle with Beijing over industrial policy.

This would further escalate the trade war Trump is leading against China.

The administration says eliminating the trade deficit will put the economy on a sustainable path of faster growth, an argument that has been dismissed by economists as flawed given constraints such as low productivity and slow population growth.

But she said, "We do believe that a deal that is good for Canada, good for the United States and good for Mexico is absolutely possible".

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Intel Corp., the world's second-largest chip maker, weighed in supporting Apple's opposition to the tariffs and broadening the argument. "That changes the equation". Stocks slipped on Trump's latest threat, and they drifted lower on the week, with investors bracing for the next salvo in Trump's protectionist crusade.

China's trade surplus with the US has, therefore, risen almost 15 percent from January to August 2018.

Separately, White House economic adviser Larry Kudlow told CNBC on Friday that Washington wanted to build a "coalition of the willing" to take on China that would include Japan, the European Union and other allies. "More broadly, tariffs will lead to higher USA consumer prices, lower overall US economic growth, and other unintended economic consequences".

Despite several rounds of talks between US and Chinese officials, the two countries have made little progress toward resolving their differences.

Mosee said she won't be able to either absorb higher import costs or pass them on to her customers.

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Given the smaller amount of goods China imports from the United States on which it could slap duties, Beijing has vowed to hit back with unspecified "qualitative" and "quantitative" measures, actions perceived within the US business community as likely to be increased customs and regulatory scrutiny. China is an attractive to tech manufacturing because its workforce is cheaper and the plants that produce individual components are in close proximity to one another.