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President Donald Trump again expressed optimism that the tariffs and counter-tariffs between the US and China would ultimately reach a deal. As he addressed a cabinet meeting on Thursday amid the trade war, Trump reiterated that he has a great respect for Chinese President xi Jinping. “He’s been, in a true sense, he’s been a friend of mine for a long period of time, and I think that we’ll end up working out something that’s very good for both countries,” Trump said.
“We’ll see what happens with China. We would love to be able to work a deal. They’ve really taken advantage of our country for a long period of time,” Trump said.
The president also reacted to China’s decision to ban Hollywood movies as he dismissed it and said: “I think I’ve heard of worse things.”
US vs China tariff war: China restricts import of Hollywood films
China Thursday said it would immediately restrict the imports of Hollywood films — it imports 10 Hollywood movies per year. We will follow market rules, respect the audience’s choices, and moderately reduce the number of American films imported,” the China’s National Film Administration said on its website.
Chris Fenton, author of ‘Feeding the Dragon: Inside the Trillion Dollar Dilemma Facing Hollywood, the NBA, and American Business,’ said the move was a “super high-profile way to make a statement of retaliation with almost zero downside for China.”
“Hollywood films account for only 5 percent of the overall box office receipts in China’s market. And worse for Hollywood, China taxes that small amount 50 per cent before any revenues go back to the USA,’ Fenton told Reuters.
US-China tax: Where does it stand
US raised China’s tariff to 145 per cent, the White House clarified Thursday. The 125% “reciprocal” tariff President Donald Trump announced on China yesterday comes on top of the 20% tariff that had already been in place. It hadn’t been clear yesterday if the tariffs were additive. The White House said Thursday they are. Trump has tied that 20% tariff to illegal immigration and the flow of fentanyl into the US, which he’s accused China of playing a role in. Additionally, Trump also hiked the tariffs on goods less than $800 coming from China to 120% as of May 2.
China has not announced any further tariff after its last 84 per cent. The restriction on Hollywood movies indicate that China would consider other avenues to counter US — apart from tariffs.
