ibusinesslines.com September 20, 2018

USA slams hefty new tariffs on China as North Atlantic Treaty Organisation summit begins

12 July 2018, 04:40 | Kelvin Horton

Canola is an “imperfect substitute” for soybeans Mike Drew Postmedia

Canola is an “imperfect substitute” for soybeans
Mike Drew  Postmedia

On July 10, U.S. Trade Representative Robert Lighthizer announced in a statement that U.S. President Donald Trump has "ordered USTR to begin the process of imposing tariffs of 10 percent on an additional $200 billion of Chinese imports".

If the United States were to impose tariffs on oil, US oil sellers would have to look for other destinations and attract new customers, which could cost them more.

"The Chinese government as always will have no choice but to take the necessary countermeasures", said China's ministry of commerce in a statement, without elaborating further.

The US tariffs which took effect this month target a wide range of Chinese goods - including aircraft parts and computer hard drives - that Washington says have benefited from unfair trade practices. "China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology", Trump said. They criticize Trump's tactics but share US complaints about Beijing's industrial policies.

This most recent maneuver follows a threat President Trump made last month, and comes days after the USA and China imposed tit-for-tat tariffs on more than $30 billion in goods.

China imported US goods worth $130 billion previous year and Friday's tariff hike hit $34 billion of that, with another $16 billion cited for a possible increase.

State media cast news of new tariffs and slumping shares in a different light.

The proposed new US tariffs follow the decision to impose duties in two stages on $50 billion in Chinese goods.

The trade war between the world's two largest economies continues to heat up with the United States drafting tariffs on another $200 billion in Chinese imports.

Senate Finance Committee Chairman Orrin Hatch, R-Utah, responded to Lighthizer's announcement with dismay.

"The last thing America's manufacturing workers need is an escalating trade war", said NAM President and CEO Jay Timmons.

"This type of irrational behaviour is unpopular", the statement said, adding China would tack on the case to its suit against the USA at the WTO.

The United States is already working on a second wave of tariffs on Chinese goods worth $16 billion.

While summer is usually the peak season to export U.S. lobsters to China, the "crazy" 25% tariffs could drive customers to Canadian suppliers, according to Justin Oakes, a business development manager for North America at Gfresh, an online Chinese seafood marketplace.

On Wednesday, China's main stock index lost 1.8 percent and Japan's market benchmark fell 1.1 percent. That number exceeds the total value of items China imports from the United States, and since it can not match Washington dollar for dollar, Chinese officials familiar with the plans told the Journal that China is looking into alternatives.

Ivanka's products remain untouched by these tariffs and the fashion line is continuing to work with and create order contracts for Chinese shoe suppliers, such as Chengdu Kameido Shoes and Hangzhou HS Fashion.

"This is going to drag on until they can all come to the table and agree to even the playing field".

Auto parts retailers, which would also be affected by the latest tariff threats the US lobbed at China, fell more steeply than the broader market.

The spiraling conflict stems from Washington's complaint that Beijing steals or pressures companies to hand over technology and concerns that plans for state-led development of Chinese champions in robots and other fields might erode American industrial leadership.

"A tariff is a tax and in today's global economy.American manufacturers are simply tied to suppliers from outside the USA for their competitiveness.So when we tax those imports, we're taxing American manufacturers, not to mention consumers, and that heavily handicaps our own manufacturers".

"Given China's likelihood of retaliation, it's also billions worth of new tariffs on American exporters". Mr Tusk added "we spend on defence much more than Russian Federation and as much as China".

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