China announced their plans to retaliate against $60 billion of tariffs announced by President Trump Thursday by imposing their own tariffs on exports to the U.S. in response.
Here's what they're doing
China's commerce ministry announced that they would be imposing a $3 billion tariff on steel, pork and wine, and would be taking up legal action against the United States with the World Trade Organization.
128 U.S. products would be included in the tariff retaliation, with a 25 percent increase on pork imports, and 15 percent on steel pipes, fruit and wine.
A trade war?
President Trump tweeted that he believed a trade war would be easy to win.
"When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win," he tweeted.
When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with… https://t.co/lPSkkolNRP— Donald J. Trump (@Donald J. Trump) 1519987834.0
"Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore-we win big," he explained. "It’s easy!"
Later when asked to clarify his position extolled in his tweet, he walked back the statement, saying that there would be no trade war.
Leveraging China against North Korea
Trump also promised that he would use the economic power of the United States to force China to persuade North Korea to decrease their belligerent missile tests and threatening statements. After months of negotiations, Trump signaled that he believed China had failed in their agreement to influence the North Korean regime.
While I greatly appreciate the efforts of President Xi & China to help with North Korea, it has not worked out. At least I know China tried!— Donald J. Trump (@Donald J. Trump) 1497983891.0
"While I greatly appreciate the efforts of President Xi & China to help with North Korea," he tweeted in June 2017, "it has not worked out. At least I know China tried!"
However, North Korea has since announced their willingness to denuclearize, and Trump accepted their invitation to negotiate along with their South Korean rivals.