Economy

Trump wants to stop subsidies to growing economies like India, China

Fault lines:   President Trump accused the WTO of allowing China to become a ‘great economic power.’

Fault lines: President Trump accused the WTO of allowing China to become a ‘great economic power.’

President Donald Trump on Friday said he wants to stop the subsidies that growing economies like India and China have been receiving as he wants the U.S., which he considers as a “developing nation,” to grow faster than anybody.

Addressing a fundraiser event in the Fargo city of North Dakota, he also accused the World Trade Organization (WTO) of allowing China to become a “great economic power“.

“We have some of these countries that are considered growing economies. Some countries that have not matured enough yet, so we are paying them subsidies.

“Whole thing is crazy. Like India, like China, like others we say, ‘oh, they’re growing actually’,” Mr. Trump said.

He said that they call themselves developing nations and “under that category they get subsidies.”

“We have to pay them money. This whole thing is crazy, but we’re going to stop it. We’re going to stop it. We have stopped it.

U.S., a developing nation

“We are a developing nation, too, OK? We are. As far as I’m concerned, we are a developing nation. I want to be put down in that category because we are growing, too. We are going to grow faster than anybody,” Mr. Trump said amidst applause from the audience.

Mr. Trump also warned he was ready to slap tariffs on virtually all Chinese imports into the United States, threatening duties on another $267 billion of goods on top of $200 billion in imports primed for levies in coming days.

The moves would sharply escalate Mr. Trump’s trade war with Beijing over his demands for major changes in economic, trade and technology policy. China has threatened retaliation, which could include action against U.S. companies operating there.

Hours after a public comment period closed on his $200 billion China tariff list, Mr. Trump told reporters aboard Air Force One that he was “being strong on China because I have to be.”

“The $200 billion we are talking about could take place very soon depending on what happens with them. To a certain extent it’s going to be up to China,” Mr. Trump said. “And I hate to say this, but behind that is another $267 billion ready to go on short notice if I want. That totally changes the equation.”

Stocks slip

Stock prices slipped after his comments, with the S&P 500 off 0.2%, while China’s off-shore trade yuan currency fell against the dollar.

Mr. Trump has already imposed 25% tariffs on $50 billion worth of Chinese goods, mostly industrial machinery and intermediate electronics parts, including semiconductors.

Major technology company Apple Inc. said a “wide range” of its products would be hit by the tariffs, but not its iPhone. It said that its AirPods headphones, some of Apple’s Beats headphones, and its new HomePod smart speaker would face levies, causing its shares to slip in late trading.


Our code of editorial values

This article is closed for comments.
Please Email the Editor

Printable version | Jun 30, 2022 12:36:06 am | https://www.thehindu.com/business/Economy/trump-wants-to-stop-subsidies-to-growing-economies-like-india-china/article24904051.ece