Trump ‘orders’ U.S. companies to pull out of China, jacks up tariffs and eviscerates Fed chairman in market-crashing tweetsAugust 23, 2019 0 By Archana Chaudhary
An increasingly unhinged President Trump “ordered” American companies on Friday to stop doing business with China and announced he would jack up existing tariffs on Chinese goods coming into the U.S., sending markets into a brutal tailspin.
Trump’s Twitter-delivered commands and threats came on the heels of his blasting Federal Reserve Chairman Jerome Powell as an “enemy” for not caving to his demand for lower interest rates.
Even though he doesn’t have any authority to boss around American companies, Trump started off the wild Twitterstorm by telling them to pull the plug on engaging with China.
“Our Country has lost, stupidly, Trillions of Dollars with China over many years,” the president tweeted. “We don’t need China and, frankly, would be far better off without them. The vast amounts of money made and stolen by China from the United States, year after year, for decades, will and must STOP. Our great American companies are hereby ordered to immediately start looking for an alternative to China, include bringing our companies HOME and making your products in the USA.”
Trump can’t legally bar companies from doing business with China, but he followed up that tweet a few hours later with another one announcing he will increase his administration’s tariffs on China— a prospect that will likely hurt American companies and consumers.
“Starting on October 1st, the 250 BILLION DOLLARS of goods and products from China, currently being taxed at 25%, will be taxed at 30%,” Trump posted. “Additionally, the remaining 300 BILLION DOLLARS of goods and products from China, that was being taxed from September 1st at 10%, will now be taxed at 15%.”
The president added, “Thank you for your attention to this matter!”
Trump’s multi-tiered social media outburst came after China slapped levies on $75 billion of American goods in retaliation for the president’s tariff-heavy trade war tactics.
The president’s shrill proclamations sent shivers through global markets with the Dow Jones Industrial Average plunging 623 points, or more than 2.4%.