Donald Trump was previously warned about his 'obsession' over trading with China during his first term as President of the United States, according to a former Australian Prime Minister.
It's no secret that America and China are at each others' throats in a tariff war, which continues to escalate following Trump's decision to raise them again.
Tariffs explained
Tariffs are basically government-imposed taxes on imported goods. With foreign products costing more, it encourages local businesses to compete with one another.
Advert
On the flip side, an increase in tariffs can raise prices for consumers and cause trade tensions.
Trump raises China's tariffs again
Trump' tariffs of 104 percent on Chinese exports came into effect on Wednesday (9 April), the same day China hit back with tariffs of 84 percent on goods coming from the US.
Amid a world-wide meltdown, however, today (9 April) Trump announced a 90 day pause on ‘reciprocal’ tariffs but raised them again for China, this time, to 125 percent.
Malcolm Turnbull's warning
This comes after Malcolm Turnbull, the 29th Prime Minister of Australia, said he warned Trump about what could happen to the global markets.
Turnbull, who was in charge of Australia from 2015 to 2018, shared an excerpt of his 2020 memoir on X, writing in the post: "Deja vu all over again."
Advert
"We talked about America's trade deficit with China on many occasions; it was almost an obsession with him," he wrote in his best-selling book A Bigger Picture: With New Foreword.
"I urged him to stop trying to get the Chinese 'to buy more of our stuff' and instead focus on fair and reciprocal trade, a level playing field: if that were achieved, then the trade balance would be whatever it was, but would probably improve from his point of view.
"When we met privately in Manila in November at the East Asia Summit, he asked me what I thought would happen if he banned all Chinese imports into the United States.
"'A global depression', I said, as quietly as I could."
Advert
Now, in today's announcement, Trump also said he would keep 10 percent baseline tariffs on most countries.
"Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States," he added.
"I have authorised a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10 percent, also effective immediately.
"Thank you for your attention to this matter!"
Topics: Donald Trump, US News, Politics, China
Anish Vij