Simon Birmingham calls for US, China trade truce

Trade Minister Simon Birmingham has spoken out about how tariff rises between US and China jeopardise the world economy.

Trade Minister Simon Birmingham has spoken out about the growing threat to the global economy due to the escalating trade war between the US and China. Picture: AAP

Trade Minister Simon Birmingham yesterday urged China and the US to resolve their trade differences, warning that ­Donald Trump’s threatened increase in tariffs on $US300 billion worth of goods from China could damage global economic growth.

“We urge the world’s two largest economies … to keep talking, keep engaging and hopefully resolve their dispute,” he said in Beijing yesterday.

Senator Birmingham, who is in Beijing for negotiations on the 16-member Regional Comprehensive Economic Partnership trade agreement, said an escalating trade war ­between the US and China would only “hurt the global economy”.  “We know from the IMF and the OECD that trade tensions and ­escalating protectionism could further hurt trade flows and economic growth,” he said.

“That would be bad news for everyone.”

Senator Birmingham said Australia hoped Mr Trump’s threats of 10 per cent tariffs on $US300bn worth of Chinese exports to the US, announced in a tweet yesterday, could be averted by more talks ­before their proposed start date of September 1.