US President Donald Trump has acknowledged that farmers could be adversely affected by the escalating tariff dispute with China, but promised to make it up to them, saying they "will be better off than they ever were".
Speaking at a cabinet meeting on Monday, Trump addressed the Chinese threat to slap tariffs on soybeans and other agriculture staples grown in rural America, a move that could hit Midwestern farmers, many of whom are strong supporters of the president.
"If during the course of the negotiation they want to hit the farmers because they think that hits me. I wouldn't say that's nice, but I tell you our farmers are great patriots," Trump said. "They understand that they're doing this for the country. We'll make it up to them. In the end they're going to be much stronger than they are right now."
China is threatening the tariffs in response to Trump moving to enact protectionist measures as punishment for Chinese theft of US intellectual property. The US bought more than $US500 billion ($A650 billion) in goods from China last year and now is planning or considering penalties on some $US150 billion of those imports.
As the economic sabre-rattling shakes global markets, Trump said on Monday he had a good relationship with China and with President Xi Jinping, but repeated his claim that China has been "taking advantage of the United States for many years". He added that he doesn't blame China, but American leaders for creating a "lopsided" set of trade rules.
Earlier in the day, Trump tweeted about the "STUPID TRADE" with China, saying that when a Chinese-made vehicle is sent to the US, the tariff is only 2.5 per cent, while American cars exported to China are slapped with a 25 per cent tariff.
China charges total duties of 25 per cent on most imported cars - a 10 per cent customs tariff plus a 15 per cent auto tax. Since December 2016, Beijing also has charged an additional 10 per cent on "super-luxury" vehicles priced above 1.3 million yuan (about $A260,000).
