WASHINGTON, Aug 3 (Reuters) - U.S. President Donald Trump
said on Saturday that things are going well with China,
insisting U.S. consumers are not paying for import taxes he has
imposed on goods from that country although economists say
Americans are footing the bill.
"Things are going along very well with China. They are
paying us Tens of Billions of Dollars, made possible by their
monetary devaluations and pumping in massive amounts of cash to
keep their system going. So far our consumer is paying nothing -
and no inflation. No help from Fed!" Trump said on Twitter.
He also said - without presenting evidence - that countries
are asking to negotiate "REAL trade deals," saying on Twitter,
"They don't want to be targeted for Tariffs by the U.S."
Trump abruptly decided on Thursday to slap 10% tariffs $300
billion in Chinese imports, stunning financial markets and
ending a month-long trade truce.
China vowed on Friday to fight back.
Tariffs are intended to make foreign goods more expensive to
boost domestic producers, unless international exporters reduce
prices. But there has been no evidence that China is cutting
prices to accommodate Trump's tariffs.
A study published by the National Bureau of Economic
research in March found that all of the cost of tariffs imposed
in 2018 were passed on to U.S. consumers.
(Reporting by Patricia Zengerle
Editing by Alistair Bell)
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