President Donald Trump has reacted to news that American automaker Ford Motors has scrapped a deal with China to sell small cars produced in the Asian country due to the high tariffs. According to Trump, the nixed deal is just the first sign that tariffs are working. He also suggested that Ford should start producing such cars domestically to avoid running into problems with the high tariffs.
“Ford has abruptly killed a plan to sell a Chinese-made small vehicle in the U.S. because of the prospect of higher U.S. Tariffs.” CNBC. This is just the beginning. This car can now be BUILT IN THE U.S.A. and Ford will pay no tariffs!— Donald J. Trump (@realDonaldTrump) September 9, 2018
Previously, Apple announced that it will have to raise the prices on some of its production due to some of the parts being made in China and thus fall under the tariffs imposed by Washington. Trump responded to the news by suggesting an "easy solution": bringing the production of the parts back to the US, where they won't be subject to import taxes.
Apple prices may increase because of the massive Tariffs we may be imposing on China — but there is an easy solution where there would be ZERO tax, and indeed a tax incentive. Make your products in the United States instead of China. Start building new plants now. Exciting! #MAGA— Donald J. Trump (@realDonaldTrump) September 8, 2018
The US and China have been engaged in a trade war since Washington imposed 25% and 10% tariffs on steel and aluminum, demanding that Beijing reset all of its tariffs on US goods to zero. China has responded by imposing its own 10% and 25% tariffs on various US goods. Washington is regularly expanding the list of Chinese goods affected by tariffs, with Beijing reciprocating accordingly. At the moment, over $500 billion worth of goods have been hit with tariffs on both sides.