Published: Thu, April 05, 2018
Money | By Wilma Wheeler

If US wants a trade war, China is ready to fight

If US wants a trade war, China is ready to fight

Adams, of PNC Financial, said the tariffs would be especially painful for companies in agriculture: machinery makers in the USA would pay more for imported components, and they wouldn't sell as much food in China because their products would be more expensive. West Texas oil fell as commodities were roiled by the growing trade dispute, while emerging-market stocks tumbled and their currencies dropped.

"If the US decides to increase intensity, China will surely follow suit", said Tu.

The tariff list from the office of US Trade Representative Robert Lighthizer followed China's imposition of tariffs on $3 billion worth of USA fruits, nuts, pork and wine to protest new US steel and aluminium tariffs imposed last month by Trump.

If a nation unilaterally raises tariffs against imports from another country (or group of countries), they can refer the matter to the World Trade Organisation for binding arbitration and/or they can retaliate against the first country by raising their own tariffs on the goods they import from them. The US list covers machinery, electronics, uranium, flamethrowers and even dental devices.

According to The Street, "China is Boeing's biggest export market and the 737 is its biggest selling product".

China on Wednesday hit back at President Donald Trump's plan to impose tariffs on $50 billion in Chinese goods by proposing additional tariffs of 25 percent on 106 categories of US imports including soybeans, autos, chemicals and some types of aircraft.

Is there time for the USA and China to avoid a trade war?

Boeing and Caterpillar led a slide in big US manufacturers and technology companies that bore the brunt of the U.S.

Announcing the package of tariffs on March 22, Donald said it will help the U.S. reduce trade imbalances with China and curb theft of American intellectual property.

"I'm so proud of the effort that footwear companies, executives, employees and FDRA staff put forward to help keep footwear off President Trump's new tariff target list", said Matt Priest, president and CEO of the Footwear Distributors & Retailers of America, which spearheaded the shoe industry's efforts to combat additional tariffs. That's on top of duties announced last month, meaning that some forms of those products will face a 50 percent fee to reach the US, further boosting prices for some products.

It is also important to remember that the USA economy is more open (i.e. less tariffs and import barriers) than the EU's and Chinese economy.

China's tariffs "amount to about three-tenths of a percent of our GDP". Should the new USA doctrine of trade "reciprocity" lead to more open economies at the U.S.' key trading partners, rather than being a hindrance, this would be a benefit for global trade and therefore global economic growth. China's tariffs covered goods ranging from soybeans, cars and chemicals to whisky, cigars and tobacco. The question now is whether China will make any concessions in talks now under way between the two sides, before the tariffs come into force. Almost all clothing sold in the USA - 97 percent- is imported, and China is the top import partner by far, responsible for 41 percent of US imports. President Trump's tariffs are therefore penalties imposed on Americans.

"We have to export".

Brazil and Argentina are the main competitors to USA growers in the market for soybeans and corn. David Petraeus considered the situation and said to a reporter, "Tell me how this ends". The government is holding a public hearing on May 15 for United States businesses to air concerns to administration officials.

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