Washington DC, May 13: The US businesses will also suffer from a recent tariff hike on Chinese goods, a top economic advisor at the White House has admitted. "Both sides will pay...China will suffer (economic) losses from reduced exports to the US, not from paying the tariffs," Al Jazeera quoted Larry Kudlow, the head of the President's National Economic Council, as saying. Kudlow's comment is in direct contrast with US President Donald Trump's claims.
Trump has said that trade wars are "easy to win." Recently, the United States accused China of reneging on prior concessions and confirmed last Friday that tariffs on 200 billion dollars of Chinese imports could increase to 25 per cent from 10 per cent. There is a possibility that the US could further extend the tariff on Chinese goods to the tune of 325 billion dollars. US-China Trade War Escalates: Beijing Imposes Fresh Tariffs on $60 Billion-Worth American Goods.
Tariff war began in early 2018. Major sticking points in trade negotiations include technology transfer and intellectual property. Meanwhile, Beijing said it still remains "cautiously optimistic" about the future of trade negotiations with the US. Speaking after the two-day talks in Washington, the head of the Chinese delegation Vice Premier Liu He said that despite "minor twists and turns" he does not see the negotiations as having been "derailed."