White House expects China to retaliate over trade tariffs

WASHINGTON — The U.S. is awaiting retaliation from China over increased tariffs, after talks in Washington ended without a deal on trade, the president’s chief economic adviser said on Sunday.

“The expected countermeasures have not yet materialized. We may know more today or even this evening or tomorrow,” Larry Kudlow told “Fox News Sunday.” Kudlow also said that President Donald Trump’s plan to raise U.S. tariffs on Chinese goods across the board could take months to take effect.

“Call it a couple of months. Call it three months. I don’t know. That will take some time and then of course the president’s going to have to make the final decision on that,” Kudlow said.

The United States raised tariffs on $200 billion in Chinese imports from 10% to 25% on Friday after American officials accused Beijing of backtracking on commitments made in earlier rounds of negotiations.

Kudlow also acknowledged that China doesn’t pay the tariffs, in contrast to Trump, who has repeatedly tweeted that China pays the tariffs and in doing so transfers wealth to the United States.

“Both sides will pay,” Kudlow said when pressed on the issue. “The Chinese will suffer (economic) losses and so forth with respect to a diminishing export market.”

U.S. importers pay tariff charges, though large retailers might be able to force some Chinese suppliers to cut their prices to offset the duties. But academic studies have found that so far U.S. consumers and businesses are bearing the cost of Trump’s tariff hikes.

Talks in Washington broke off on Friday without a deal, but both sides have indicated that future talks are likely. Kudlow said nothing has been scheduled, but Chinese officials have invited U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin to visit Beijing.

Kudlow also said that Trump and China’s President, Xi Jingping, may meet in late June at the G20 international conference in Japan.

“I think that China felt they were being beaten so badly in the recent negotiation that they may as well wait around for the next election, 2020, to see if they could get lucky & have a Democrat win,” Trump tweeted Saturday.

Beijing retaliated for previous tariff hikes by raising duties on $110 billion of American imports. And officials have targeted American companies operating in China by slowing customs clearance and stepping up regulatory scrutiny.

Sen. Rand Paul, R-Ky., told ABC’s “This Week” on Sunday that he advised the president to finalize a trade deal with China soon, “because the longer we’re involved in a tariff battle or a trade war, the better chance there is that we could actually enter into a recession because of it.”

The two countries are sparring over U.S. allegations that China steals technology and pressures American companies into handing over trade secrets, part of an aggressive campaign to turn Chinese companies into world leaders in robotics, electric cars and other advanced industries.

Just Posted

Crews fight fire with fire to keep blaze from northern Alberta town

HIGH LEVEL, Alta. — A fire-threatened town in northern Alberta says a… Continue reading

India’s ruling party claims win with assured lead in votes

NEW DELHI — Indian Prime Minister Narendra Modi’s party claimed it had… Continue reading

China says door open to trade talks, but slams tech controls

BEIJING — China held the door open to resuming talks in the… Continue reading

Clean energy one of Canada’s fastest-growing industries

OTTAWA — Canada’s clean-energy sector is growing faster than the economy as… Continue reading

Red Deer’s single parents and children at greatest risk of poverty, says report

Yet almost half of local low-income families are people living alone

Dogs and drugs don’t mix: Red Deer business wants to leave downtown after 18 years

One business owner is done with downtown Red Deer after 18 years.… Continue reading

Cast your votes for the Best of Red Deer

Nominations for the Best of Red Deer Readers’ Choice Awards are officially… Continue reading

Canada’s Rebecca Marino drops second-round French Open qualifying match

PARIS — Canada’s Rebecca Marino fell just short in a second-round qualifying… Continue reading

Acclaimed writer Casey Plett wins $60K First Novel Award for ‘Little Fish’

TORONTO — Casey Plett has won the Amazon Canada First Novel Award… Continue reading

Nik Wallenda and sister plan highwire walk over Times Square

NEW YORK — For his next trick, daredevil Nik Wallenda plans to… Continue reading

Gardening: Adding a new dimension with water

A water feature, large or small, adds a whole new dimension to… Continue reading

Alberta throne speech promises changes to expand economy, end carbon tax

EDMONTON — The new Alberta government has set its first legislature sitting… Continue reading

Wider fire bans, off-highway vehicle restrictions in northern Alberta

The fire ban prohibiting campfires and unauthorized burning, and restricting the use… Continue reading

WestJet pilot injured by green laser light while approaching Orlando airport

A WestJet pilot flying from Newfoundland to Orlando International Airport had his… Continue reading

Most Read