Trump Considering More Tariffs, Says US Can’t Have ‘China Take $500B a Year’

Here's what you need to know about the ongoing trade war.

In an interview with Lesley Stahl on “60 Minutes” on Oct. 14, 2018, President Donald Trump said he “might” impose more tariffs on China. He has already imposed $250 billion in tariffs on products that are brought into the U.S. from China. China has retaliated against the tariffs that have already been enacted and has said it will retaliate further against any additional tariffs, as industries are already feeling the impact.

Trump said that the Chinese “want to negotiate … they want to negotiate.” When asked if he would negotiate with them, he said, “I told President Xi we cannot continue to have China take $500 billion a year out of the United States in the form of trade and other things … and I said we can’t do that, and we’re not going to do that anymore.”

Click to read about the 12 states getting hit hardest by Trump’s tariffs.

Trump Plans More Tariffs to Get ‘Fair Deal’ From China

“So far, I put 25 percent tariffs on steel dumping,” Trump said. “And aluminum dumping, 10 percent. They can retaliate, but they don’t have enough ammunition to retaliate. We do $100 billion with them. They do $531 billion with us.”

Trump said his intent was not to push China into an economic depression. “I don’t want that,” he said. “I want them to negotiate a fair deal with us. I want them to open their markets like … our markets are open.”

See: Trump’s Tariffs Are Killing More Than 450,000 Jobs

Multiple industries have felt the impact of this trade war — or, “skirmish” as Trump called it in the interview — and retailers are likely going to have to pass costs on to consumers to mitigate the effects of the tariffs. Not only could the tariffs affect the holiday shopping season, but The Washington Post reported that the International Monetary Fund cut its 2019 growth forecast for the U.S. economy from 2.7 percent to 2.5 percent, saying President Trump’s trade policies could harm domestic and international growth.

Related: Why Everything You Buy at Walmart and Amazon Is About to Cost More

How the US-China Trade War Has Played Out So Far

Here’s a quick rundown of how the trade war and tariffs have escalated so far in 2018:

  • The trade tensions began in March, when Trump announced tariffs on steel and aluminum from most foreign countries.
  • Trump then announced he would impose a 25 percent tariff on up to $50 billion worth of goods from China.
  • China said it would retaliate with tariffs of its own, and in April released a list of more than 100 U.S. products that would be subject to tariffs.
  • In July, the U.S. named $200 billion worth of Chinese goods it intended to subject to a 10 percent tariff.
  • In August, the U.S. said it would impose a 25 percent tariff on $16 billion worth of goods from China.
  • In September, Trump imposed tariffs on about $200 billion worth of Chinese imports. Trump has threatened additional tariffs if China continues to retaliate.

Where the trade war will go from here might depend on China’s reaction to future tariffs, and Trump’s satisfaction — or lack thereof — with its willingness to negotiate.

Click to see why you should watch FedEx to protect your investments during Trump’s trade war.

More on Making Money and the Economy

We make money easy. Get weekly email updates, including expert advice to help you Live Richer™.