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China Retaliates With Tariffs on $60 Billion of U.S. Goods

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  • China announced that they will impose tariffs on $60 billion worth of U.S. goods just days after the U.S. announced it will impose tariffs on $200 billion worth of Chinese goods.
  • After months of trade negotiations between the U.S. and China, the U.S. escalated tensions once more, claiming that China was backing out of key parts of the trade deal.
  • Many experts believe the increased U.S. tariffs will hurt U.S. consumers and the economy, despite President Trump’s claims that they will only hurt China.

China Bites Back

China announced Monday that they will raise tariffs on $60 billion worth of U.S. goods, a move that came as a response to the Trump administration’s decision Friday to impose tariffs on $200 billion worth of Chinese goods.

The Trump administration’s efforts targets existing tariffs by raising taxes on those $200 billion worth of Chinese goods from 10 percent to 25 percent. Though it has not been formally announced, President Donald Trump also plans on placing new tariffs on essentially all goods imported from China, according to a statement from U.S. Trade Representative Robert Lighthizer.

“The President also ordered us to begin the process of raising tariffs on essentially all remaining imports from China,” Lighthizer’s statement said, “Which are valued at approximately $300 billion.”

China responded to this by announcing that starting June 1, they will raise their tariffs as high as 25 percent on U.S. goods that used to be taxed at 10 percent. The tariffs will apply to nearly 5,000 U.S. goods, and the steepest tariffs will apply to animal products, seasonings, live plants, a range of fruits and vegetables, and more.

While the new tariffs appear to be somewhat of a numbers game on the surface, it begs the question: What does this mean for the bigger picture?

There are two main implications here. First, what these new tariffs mean for the ongoing trade war between the U.S. and China; And second, what impact the Chinee tariffs will have on the U.S. economy and U.S. consumers.

Trade War Implications

Trump has long accused the Chinese government of hurting off U.S. consumers and businesses by stealing intellectual property from the U.S, unfairly subsidizing domestic companies, and flooding international markets with cheap goods causing U.S. companies to go out of business.

Since January 2018, the two countries have seen an ongoing cycle of the U.S. imposing tariffs on Chinese goods, and China responding by doing the same. All of this has amounted to what is essentially a tit-for-tat trade war.

However, in December, the escalation seemed to slow when the two countries agreed to negotiate a trade deal. For months, it seemed like China and the U.S. could reach an agreement. Then, despite numerous claims from Trump and his administration that the talks were going well, Trump decided to raise the tariffs last week amid highly anticipated negotiations.

Trump has argued that U.S. and Chinese negotiators failed to reach a deal during trade talks last week because China had backed out of major parts of the deal. China denied these accusations, saying they just wanted to renegotiate parts of the deal that they believe infringe on Chinese sovereignty.

Despite the recent escalation, the deal is still not off the table. Neither the U.S. tariffs nor China’s go into effect immediately. As noted above, China’s tariffs go into place on June 1, and the Trump administration structured its tariff increase so that they will not go into effect for a few more weeks, giving both sides time to negotiate.

The question that remains then is whether or not they can reach an agreement. Numerous Chinese officials have said they wish to resume trade negotiations, a point that was reiterated in the Chinese Finance Ministry’s official statement announcing their retaliatory tariffs.

“The Chinese side hopes that the US will return to the correct track of bilateral economic and trade consultations and work together with China to move toward each other and strive to reach a mutually beneficial and win-win agreement on the basis of mutual respect,” the statement said.

Trump for his part expressed his desire to negotiate a deal, but also appeared to threaten China in a series of tweets Monday, writing “China will be hurt very badly if you don’t make a deal”

Impact on the U.S. Economy

Trump also tweeted Monday morning saying that there is “no reason for the U.S. Consumer to pay the Tariffs.”

“There will be nobody left in China to do business with. Very bad for China, very good for USA! […] China should not retaliate-will only get worse!” He continued in the same thread.

That brings us to the second implication these tariffs have, which is the impact on the U.S. economy. As he said in those tweets, Trump has repeatedly argued that the tariffs will hurt China and not U.S. consumers.

In the same thread of tweets, Trump said consumers could mitigate the financial hit caused by the tariffs by buying American-made products or products manufactured in countries that are not subject to the tariffs, like Vietnam.

However, both trade experts and business groups have said Trump often is wrong in his characterization of how tariffs work. Tariffs are taxes paid by U.S. companies to buy foreign products, which means those taxes are not paid by China, but companies like manufacturing firms and other producers that need Chinese products.

When taxes are imposed, it makes Chinese products more expensive. However, it does not lower demand for those products from U.S. companies that need those Chinese goods to operate, and now have to pay more.

This specifically includes U.S. agriculture companies, which have already been hit by the new penalties, prompting a $12 billion bailout from Trump last year. Trump has said he will seek an additional $15 billion in from U.S. taxpayers to give to farmers.

All of this to say that the tariffs imposed by the U.S, can end up hurting U.S. companies and economic growth in the U.S. as well as China. This was a point that was made by Trump’s National Economic Council Director Larry Kudlow, who contradicted Trump last night in an interview with Chris Wallace, the host of Fox News Sunday.

“It’s not China that pays tariffs,” Wallace said. “It’s the American importers, the American companies that pay what, in effect, is a tax increase and oftentimes passes it on to U.S. consumers.”

“Fair enough,” Kudlow responded. “In fact, both sides will pay. Both sides will pay in these things.”

U.S. investors are also worried about the impact of the tariffs.

“The costs of U.S. tariffs have fallen entirely on U.S. businesses and households, with no clear reduction in the prices charged by Chinese exporters,” Goldman Sachs analysts wrote a note to investors on Monday. “The effects of the tariffs have spilled over noticeably to the prices charged by U.S. producers competing with tariff-affected goods.”

Investors clearly responded Monday when U.S. stocks fell by triple digits. The S&P 500 and the Dow saw their worst day since Jan. 3, while the Nasdaq had its biggest drop this year. Stocks closed with major market averages falling by over two percent.

See what others are saying: (The Washington Post) (The Wall Street Journal) (Fox Business)

International

Indonesian President Delays Bill Outlawing Extramarital Sex

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  • The President of Indonesia tabled a vote on a proposed penal code that would outlaw sex outside of marriage. The legislation will now be pushed to a new parliament set to convene in October.
  • The vote was delayed after it received widespread backlash from legal experts, human rights activists, and Indonesians, many of whom believed it was an overextension of conservative Islamic policies.
  • The legislation included other provisions that would limit freedom of speech, reduce rights for religious minorities, and significantly restrict women’s reproductive rights.
  • Gay and lesbian sex would also be functionally criminalized under the new penal code, as gay marriage is not allowed in Indonesia.

Widodo Halts Vote

Indonesian President Joko Widodo delayed a vote on a controversial new penal code Friday that, among other things, would criminalize both gay and premarital sex.

The bill was expected to be passed by parliament as early as next week, but Widodo asked lawmakers to postpone the legislation following significant public outcry. The bill will now be held until a new parliament is seated in October.

“After hearing from various groups with objections to aspects of the law, I’ve decided that some of it needs further deliberation,” the president said in a press briefing, before adding that the bill needed further review.

If passed, the new penal code would be a massive overhaul to existing legal systems.

Provisions of the Law

One provision would have punished any instance of sex outside of marriage with six months to a year in jail as well as fines. Though not explicitly stated in the law, it would also effectively outlaw gay and lesbian sex entirely, because Indonesia does not allow same-sex marriages.

According to the Institute for Criminal Justice Reform, a nongovernmental organization, millions of Indonesians could risk being jailed under the new law. 

Under another article, unmarried couples living together could face up to six months in prison and fines.

The code also included measures that would restrict women’s reproductive rights. Receiving an abortion outside of the exceptions of medical emergencies or rape could be punishable by a maximum of four years in prison.

The bill would additionally restrict access to contraceptives for minors, as well as impose penalties for promoting contraceptives.

Some proposed provisions would target religious minorities, while others would limit freedom of speech, such as prohibiting anyone from insulting the president, vice president, government, and state agencies.

Supporters

The new law was supported by conservative Islamic groups, who wish to see more sharia-like laws implemented in the world’s most populous Muslim-majority country.

“Indonesia has social values, moral values, also cultural values that are different from those in Western countries,” said Arsul Sani, one of the lawmakers who supported the bill, and who belongs to one of the four Islamist parties in Indonesia’s parliament.

“The state must protect citizens from behavior that is contrary to the supreme precepts of God,” said Nasir Djamil, another parliamentarian who supported the bill from a different Islamic party.

Despite its reputation for being a south-east Asian democracy with relatively moderate Muslims populations and Islamic legal systems, Indonesia has seen a recent trend towards deeper religiosity and conservative Islamic policies, especially at the local level.

In some areas, local governments have enforced aspects of sharia law, such as requiring women to wear hijabs and adopting curfews for women unaccompanied by male relatives. 

Opponents

The government’s efforts to implement elements of sharia law at the national level with the proposed penal code have been troubling to Indonesia’s substantial Christian, Hindu, and Buddhist minority populations, as well as many others.

“If passed, the criminal code will confirm that Indonesia is now becoming an Islamic state,” Andreas Harsono, a senior Indonesia researcher at Human Rights Watch said on Twitter.

“Indonesia’s draft criminal code is disastrous not only for women and religious and gender minorities, but for all Indonesians,” Harsono said in a statement to the media. “The bill’s provisions censoring information about contraception could set back the progress Indonesia has made in recent years to dramatically reduce maternal deaths.”

Other experts echoed Harsono’s sentiment about the spread of Islamic conservativism.

“Across the board, this is a ratcheting up of conservatism. It’s extremely regressive,” said Tim Lindsey, the director of the University of Melbourne’s Center for Indonesian Law, Islam and Society.

Beyond legal experts and activists, a large number of Indonesian citizens also voiced their disapproval of the law.

According to Al Jazeera, an online petition for the bill the be thrown out received nearly half a million signatures, and hundreds of thousands of Indonesians voiced their opposition on social media. 

Some also argued that the ban on extramarital sex could discourage tourism and foreign investment, as the law would have applied to foreigners. 

This could significantly hurt Indonesia, especially at a time when President Widodo is trying to attract foreign investors and expand tourism to other parts of Indonesia beyond Bali, which is a popular spot for Westerners.

According to the World Travel and Tourism Council, in 2018, travel and tourism composed 6% of Indonesia’s gross domestic product (GDP) and added 13 million jobs to the economy.

Foreign investors will also likely consider the penal code when deciding where to invest. Some international companies have also expressed concern over how the law would impact their employees in Indonesia.

See what others are saying: (Al Jazeera) (The New York Times) (Reuters)

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Hundreds of Thousands March in Climate Strikes Around the World

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  • Student activists all over the world are skipping school to attend the global climate strike.
  • There are over 2,000 events planned in over 150 countries.
  • The demonstrations are inspired by 16-year-old Greta Thunberg’s Fridays for Future movement, which encourages students to engage in climate change protests on Fridays.
  • Thunberg will be participating in New York City’s strike and will be in the city on Monday when the United Nations hosts the Climate Action Summit.

Protests Unfold Around the World

Student activists in every corner of the world are skipping school on Friday to participate in a global climate strike. 

From Bangkok to London and Jakarta to Toyko, hundreds of thousands of people are flooding city streets calling for action on climate change. While these demonstrations are mainly led and attended by students, activists of all ages have been encouraged to attend.

The protests are inspired by 16-year-old Greta Thunberg’s Fridays for Future movement, which she began last year. Students in the movement have been skipping school on Fridays to call for global leaders to address the climate crisis. The Swedish teenager has become internationally recognized as the face of youth environmental activism. She is currently in New York City and scheduled to speak at the organized march there.

Over one million students in New York City were given permission to leave school in favor of the protests, so long as they had parental approval. Most marches in the United States are currently underway or just beginning right now, but countries across the globe have already seen a massive turnout. 

Reports say that over 2,000 rallies across 150 countries have been planned for Friday. Right now, most cities and countries do not have clear counts on how many people attended the protests. In Australia, reports estimate about 300,000 people turned out.

Around the world, students held signs that said things like “There Is No Planet B” and “Like the Oceans, We Rise.” 

Greta Thunberg to Attend Climate Action Summit

These demonstrations precede the United Nation’s Climate Action Summit on Monday. The summit will be held in the U.N.’s capital, New York City, prompting Thunberg’s presence in the Big Apple. Thunberg sailed across the Atlantic for 15 days on a zero-carbon emissions yacht to attend the event. 

“This is not the time and place for dreams, this is the time to wake up,” she said speaking to Congress on Thursday. 

“This is the moment in history we need to be wide awake. Dreams cannot stand in the way of telling it like it is, especially not now.”

See what others are saying: (Aljazeera) (The Guardian) (Vox)

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Three Instances of Justin Trudeau in Blackface and Brownface Surface

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  • Canadian Prime Minister Justin Trudeau apologized Wednesday after TIME published a picture of him from 2001 in brownface.
  • While apologizing, he also admitted to wearing blackface during a high school talent show. Soon after, the second picture in question circulated around the internet.
  • The next day, Global News published a video of a third incident that appeared to show the prime minister in blackface again.
  • This news is expected to significantly hurt Trudeau in Canada’s election next month, which is already expected to be a close call for Trudeau’s Liberal Party.

Brownface Photo Surfaces

Canadian Prime Minister Justin Trudeau is facing backlash after three separate instances of the Liberal Party leader in brown and blackface surfaced this week.

The incident first came to light on Wednesday, when TIME published a photo of Trudeau wearing brownface. According to TIME, the photo was taken in 2001 at an “Arabian Nights” themed gala at the private school where he was teaching at the time.

Source: TIME

The outlet reported that they had been given a copy of the school’s yearbook with the photo earlier this month by a businessman named Michael Adamson, who “first saw the photograph in July and felt it should be made public.”

Shortly after the story broke, Trudeau responded in a press conference, where he confirmed that the story was true.

“I shouldn’t have done that. I should have known better, but I didn’t, and I’m really sorry,” the prime minister said. “It was something that I didn’t think was racist at the time, but now I recognize it was something racist to do, and I am deeply sorry.” 

“I have worked all my life to try and create opportunities for people, to fight against racism and intolerance. And I can just stand here and say that I made a mistake when I was younger and I wish I hadn’t,” he continued.

When asked by a reporter if that instance was the only time in his life he had done black or brownface, Trudeau admitted that he had.

“When I was in high school I dressed up at a talent show and sang ‘Day O.’ With makeup on,” he said.

After that new admission, the picture in question circulated around the internet.

Source: TIME

Third Blackface Instance Exposed

Towards the end of the news conference, a reporter asked Trudeau if he would like to speak to any other instances where he had engaged in racism.

“Do you want to tell Canadian’s about any other instances where you were concerned that you were racist? Or that you had blackface or brownface on?” the reporter asked.

“I think its been plenty,” Trudeau responded, seemingly to the first part of the question. “The fact of the matter is that I’ve always, and you’ll know this, been more enthusiastic about costumes than is sometimes appropriate. But these are the situations that I regret deeply.”

“Is it the only two or are there more?” the reporter clarified.

“These are the situations that I regret deeply,” the prime minister repeated.

However, on Thursday morning, the Canadian outlet Global News published a video that appeared to show Trudeau wearing black makeup on his face and all over his body while sticking out his tongue and making faces.

Global News reported that they had received the video from a source in the Conservative Party earlier this week, but had to verify the video before publishing it.

“A senior member of the Liberal campaign confirmed it was Trudeau early Thursday morning but would not comment further,” the outlet reported, also noting that the video was taken sometime in the 1990s.

Trudeau addressed the situation again in a longer press briefing Thursday afternoon, where he apologized directly to people of color in Canada.

“What I did hurt them, hurt people who shouldn’t have to face intolerance and discrimination because of their identity. This is something that I deeply, deeply regret,” he said.

“Darkening your face, regardless of the context, of the circumstances, is always unacceptable, because of the racist history of blackface. I should have understood that then, and I never should have done it,” he added.

The prime minister also said that he did not remember any other times that he did blackface or brownface when asked by a reporter.

Response

A number of politicians and party leaders in Canada responded to the incident after TIME published the photo. 

Jagmeet Singh, the leader of Canada’s New Democratic Party, who is Sikh, addressed the photos in an interview Wednesday.

“It’s troubling, I mean, it’s really insulting,” he said. “Anytime we hear examples of blackface or brownface it’s really, it’s making a mockery of someone for what they live and what their lived experiences are.”

“I think he needs to answer for it. I think he’s got to answer the question why he did that, and what does that say about what he thinks about people who, because of who they are, because of the color of their skin face challenges, barriers, and obstacles in their life,” he added. 

The leader of the Green Party of Canada, Elizabeth May, also chimed in, saying in a tweet that she was “deeply shocked by the racism shown in the photograph of Justin Trudeau.”

Conservative Party leader Andrew Scheer, who is also Trudeau’s main opponent responded in a video of his own.

“Like all Canadians, I was extremely shocked and disappointed when I learned of Justin Trudeau’s actions this evening,” the opposition leader said.

“Wearing brownface is an act of open mockery and racism, it was just as racist in 2001 as it is in 2019. And what Canadian’s saw this evening was someone with a complete lack of judgment and integrity, and someone who is not fit to govern this country.”

However, some have pointed out that Scheer has recently rejected calls for him to kick out members of his own party for making racist or homophobic comments. Earlier this week, he even said he would stand by candidates who had made offensive comments in the past as long as they apologized.

“As long as someone takes responsibility for what they’ve said, and addresses the fact that in 2019 some things that may have been said in the past are inappropriate today, that if anything that they’ve ever said in the past caused any type of hurt or disrespect to one community or another and have apologized for that, I accept that,” he said. 

“You know, I accept the fact that people can make mistakes in the past.”

Upcoming Election

This incident could not come at a worse time for Trudeau, who faces an already contentious election in one month.

Trudeau’s re-election prospects dipped earlier this year after it was revealed that his former justice minister and attorney general, Jody Wilson-Raybould, an indigenous woman, claimed that the prime minister and an aide pressured her to reach a settlement in a criminal case against the Canadian-based engineering and construction firm SNC-Lavalin.

The criminal case in question would have prevented SNC from getting lucrative government contracts, and Trudeau argued that settling the case would save thousands of jobs.

However, many saw the incident as a prime minister, a self-described feminist who claimed to champion indigenous rights, directing his mostly male aides to bully an indigenous woman to protect a corporation that financially benefited the Liberal Party in Quebec, where Trudeau is from.

Now, experts believe that this new blackface scandal could seriously hurt Trudeau’s chances of re-election.

The prime minister fell drastically in the polls after Canada’s ethics commissioner found that he had broken the country’s conflict-of-interest law in the SNC debacle.

Even before the blackface controversy broke on Wednesday, the Conservative and Liberal parties were polling neck and neck at 34.4% and 34.2%, according to the CBC News poll tracker, which aggregates all of the other public polls.

In an already close race, experts are now saying this blackface revelation could pull not only more progressive voters away from the Liberal Party, but also centrist voters.

Canada also has a large population of people who are of South Asian and Middle Eastern descent. Those demographics have been a key source of support for the Liberal Party and Trudeau in the past, specifically in areas around Toronto, which are seen as key electoral battlegrounds for the Liberals.

With this recent controversy, it is unclear where those voter bases, which could be essential to giving Trudeau the edge he needs to be re-elected, will cast their votes next month.

See what others are saying: (TIME) (CBC) (The Guardian)

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