ibusinesslines.com November 16, 2018

China counterpunches against US in growing trade war

08 July 2018, 03:25 | Kelvin Horton

China counterpunches against US in growing trade war

U.S. cargo ship carrying soybeans in race to beat China's retaliatory tariffs

The United States and China reciprocally invoked additional 25 percent tariffs on $34 billion worth of their imports on Friday, stoking fears that a full-fledged trade war will hurt the global economy and undermine the world free trade system.

Amazon sellers are also wondering how tariffs could impact them.

"Millions of American jobs depend on America's ability to trade with other countries", the chamber said in a recent statement.

"We can probably say that the trade war has officially started", Chen Feixiang, professor of applied economics at Shanghai Jiaotong University's Antai College of Economics and Management, told Reuters.

The European Union says it will soon take action to prevent steel produced for the USA market from flooding into Europe due to tariffs introduced by President Donald Trump.

The president's tariffs, the PIIE's researchers conclude, are "a prime example of 20th century tools aimed at the knowledge-embodying trade flows of the 21st century".

Soybean farmers are especially concerned that the tariffs will further lower prices that have, in the past month, plunged by 17 percent.

The threat of a trade war has become a reality.

"The war was lost, but now we're going to win it because we have all the cards", Trump reiterated to great applause.

The report, which shows that unemployment has dropped, also included some numbers that might not be worth the all-caps tweet, including slowed hiring in small businesses and a lack of qualified applicants in some fields, owing, possibly, to wage stagnation.

Beijing's taxes hit USA -made aircraft, cars, computer chips, fuel, pork and soybeans. China initially named cranberries as one of the products they would tax, a move aimed at House Speaker Paul Ryan's district in Wisconsin.

Gerard Bottino/CrowdSpark/NewscomBegun, the trade war has. Trump has said he is prepared to impose tariffs on up to $550 billion in Chinese imports - a figure that exceeds the $506 billion in goods that China shipped to the US a year ago.

But Trump has said his administration will respond to retaliation from Beijing with much bigger waves of tariffs, raising the prospect of worsening tit-for-tat reprisals.

The long-threatened tariffs went into effect on Friday as months of dialogue between the world's two largest economies failed to reach a solution or lessen Washington's outrage over its current trade imbalance with the Asian giant.

China's commerce ministry said it was forced to retaliate, meaning imported USA goods including cars, soybeans and lobsters also faced 25 per cent tariffs.

Liquor maker Brown-Forman Corp, whose products include Jack Daniels, is off 15 percent since late May.

As the world's most developed nation and the rule-maker of the current global governing system, there is "astounding absurdity" in the US complaining that it's been bullied in trade, the People's Daily, the flagship newspaper of the Communist Party of China, said in a Chinese language commentary on Friday. It comes at a time when the U.S. dairy industry was already bracing for new tariffs on cheese exported to Mexico.

The clash with China comes as the Trump administration is also fighting over trade with American allies such as Canada and the European Union. While Trump's duties do not apply to food products, Souhrada pointed that NAFEM member Henny Penny expects the tariffs to increase the price of their pressure cookers.

"If the United States starts imposing additional tariffs, it will actually be charging taxes on firms both in China and around the world, as well as American companies", Ministry of Commerce spokesperson Gao Feng said at a press conference on Thursday.

"You saw with China, 50 billion dollars - and another 200 billion dollars, frankly, is waiting".

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