ibusinesslines.com
ibusinesslines.com July 16, 2018


United States agriculture trade group slams Trump administration's tariffs on China

11 July 2018, 10:03 | Erica Roy

The unintended consequences of Trump’s trade war with China

Trump's Trade War Officially Begins - Hit & Run : Reason.com

US negotiators did demand China open up sheltered domestic industries and stop stealing American intellectual property.

Beijing insists it's the injured party. "China trade war, and let's hope it's not Fort Sumter", the piece began. Since then, the sides have traded salvos, with the USA focusing its import duties on high-tech equipment while China has targeted products like cars, soybeans, and lobsters - many of which are produced in areas of the US that voted for Trump.

Experts expect China to drive the global soybean demand in the next 10 years, which underscores the significance of the market for USA soy growers.

American companies doing business in China are particularly anxious.

United States relations with other major trading partners have also been fraught following the Trump administration's decision earlier this year to slap tariffs on imported steel and aluminum, including those metals from the European Union, Mexico and Canada. "Soybean demand is there, and it's really, really big as soybeans go into different channels".

Trump, who announced the U.S. starting to collect tariffs on $34 billion worth Chinese goods after midnight Thursday, warned that subsequent rounds could see tariffs on more than $500 billion of goods, or roughly the total amount that the USA imported from China a year ago. It said they would damage the global economy unless other countries stop them.

"There should be no doubting Beijing's resolve", the newspaper said. On Thursday, he suggested the possibility of tariffs on nearly $500 billion more of Chinese goods.

American soybean farmers are warning that President TrumpDonald John TrumpWhat to know about Trump's Supreme Court pick so far Bookstore owner calls police after customer confronted Steve Bannon McConnell pushing Trump toward 2 potential Supreme Court picks: report MORE's trade dispute with China will result in "serious damage" to their industry. "From China canceling soybean orders, to cheese exports to Mexico plummeting, to farm equipment prices rising, the stories of financial loss are now rolling in from farms across America", the statement said.

The managing director of the Association of German Chambers of Trade and Commerce, Martin Wansleben, also spoke out Monday in favor of strengthening economic relations between his country and China.

Products that the U.S. is now fighting trade disputes over include Argentinian textiles, India solar panels and European cheese.

Despite three rounds of negotiations between the two sides, including a Chinese pledge to significantly increase purchases of American products, Trump made a decision to go ahead with the tariffs. It also is rooted in the clash between American notions of free trade and Beijing's state-led development model.


So far, the Chinese goods the United States has chosen to levy additional tariffs on are capital and intermediate goods, rather than consumer goods.

Still, Heitkamp said "no one should be surprised by this" because "this is what (President Donald Trump) said he was going to do".

For the time being, analysts say it's hard to see Washington or Beijing backing down in the dispute.

Touching on China's massive trade surpluses with the United States, Trump told his audience, "They've been killing us".

The two giant economies appear ready to see which side can endure the most pain.

The US was now targeting China's high-tech companies and investments in the US, he said.

But, the longer the trade war goes on, the more severe the impact could become, the spokesperson said.

"Chinese spending on travel and education in the USA is similar in size to its spending on U.S. soybeans and aircraft - the two largest goods purchases", said Williams.

Trump has enraged such USA allies as the European Union, Canada and Mexico by hitting them - and just about everyone else - with a 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum.

The president believes this is the best way to close the trade deficit between the United States and China.



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