US President Donald Trump has boasted about the success of his policy of imposing tariffs on China, claiming that many firms have already left the Asian state for the US and other countries in order to avoid additional taxation on their products on the American market. At the same time, he added that the US has not faced negative consequences from imposing the tariffs.
China is subsidizing its product in order that it can continue to be sold in the USA. Many firms are leaving China for other countries, including the United States, in order to avoid paying the Tariffs. No visible increase in costs or inflation, but U.S. is taking in Billions!— Donald J. Trump (@realDonaldTrump) June 7, 2019
The US president also stated that Beijing was being forced to subsidise goods produced domestically in order for them to remain competitive on the American market.
Trump recently threatened China with additional 25% tariffs on $300 billion worth of goods unless progress is made in talks with Beijing on a new trade deal. The threat comes in the wake of the recent addition of 25% fees on $200 billion worth of goods coming from China.
Washington and Beijing have been engaged in a trade conflict since May 2018, when US President Donald Trump announced that he would impose high tariffs on $50 billion worth of Chinese goods in a bid to fix the trade deficit. Since then, the countries have engaged in talks to end the trade war, which have so far been fruitless.