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New US tariffs unacceptable, says China, East Asia News & Top Stories

12 July, 2018, 20:03 | Author: Priscilla Morrison
  • ‘Totally unacceptable’: Beijing vows retaliation if US taxes $200bn of Chinese goods

On Thursday, Beijing cut its forecast for imports of soybeans - the most-valuable crop it buys from the United States - after it imposed a 25 percent retaliatory tariff on an array of agricultural goods, which could inflict pain in Trump-supporting states such as Iowa, Kansas and Texas.

He said: "Chinese equities were amongst the worst performers today, with the Shanghai Composite dropping 1.8% after the US Trade Representative set out the $200bn of Chinese imports on which it intends to impose a 10% tariff".

The statement issued by Lighthizer was that of an imperial overlord whose word is law, to be obeyed without question, with any opposition to be met by escalating reprisals.

Both the yen and the dollar act as safe-haven investments but analysts say the strength of the U.S. dollar against the yen means investors have faith in the USA economy rather than seeking safety.

"For over a year, the Trump Administration has patiently urged China to stop its unfair practices, open its market, and engage in true market competition".

Based on recent data, Jones said US-owned subsidiaries in China generated sales of around $US350 billion, "which is similar in scale to the U.S. trade deficit in goods with China".

"China has not changed its behavior - behavior that puts the future of the US economy at risk".

Members of Congress are increasingly questioning Trump's aggressive trade policies, warning that tariffs on imports raise prices for consumers and expose USA farmers and manufacturers to retaliation overseas.

"China is shocked by the United States move and the Chinese government, as always, will have to react to defend the core interests of our nation and people", the Commerce Ministry says. China had "no choice but to take necessary countermeasures" without specifying what they might be.

This week, Trump threatened to impose an additional $200 billion worth of tariffs on Chinese-made products.

But such steps are not going to make any impact as the Trump administration and its "America First" advocates regard the WTO and the so-called rules-based worldwide trade order as detrimental to the interests of the US.

So far, China has been measured in its response to the new USA trade policy.

But the US action drew a swift reaction from the plastics and petrochemical industries, with the head of the Plastics Industry Association saying the tariffs would "boomerang" and hurt manufacturing. Some of the products on the list are part of "Made in China 2025" sectors, a strategic plan to make the Asian nation a leader in key global industries like technology.

It vowed to immediately file an additional lawsuit against the U.S. to the World Trade Organization. But China did not immediately or publicly say how it would retaliate other than complaining to the World Trade Organization.

Trump's latest move took the wind out of investors' sails largely because the central scenario for many in the markets is that Washington will eventually step back from the escalating row and settle for some sort of compromise.

Meanwhile talks among the three NAFTA signatories, launched after Trump demanded an overhaul of the "terrible deal", have snagged notably owing to USA demands to increase American content installed in duty-free autos. "Regardless, the $200 billion in potential additional tariffs is not a surprise".

The move drew immediate condemnation from Senate Finance Chairman Orrin Hatch, a Republican from Utah, who called it "reckless" and not "targeted". China has repeatedly denied accusations by the Trump administration of unfair trade policies.

Coors Brewing is on the record saying they believe the trade war will impact the price of beer.

The officials said they tried to target goods that would reduce the harm to US consumers.

It also approved a huge new wholly-owned Shanghai factory for US electric vehicle maker Tesla Inc, and a $2.3-billion joint venture organic light-emitting diode (OLED) plant to be built by South Korea's LG Display Co Ltd.

But senior Trump administration officials said on a call with reporters Tuesday that so far, the two sides haven't gotten anywhere. Around half of US propane exports went to Asia in 2017, displacing supplies from Middle Eastern countries and some regional production of propane.

China hasn't yet clarified how it will respond to the latest salvo.

"I am curious to see what China does to retaliate in the coming days". The meeting ended in an event, hosted by Merkel, at which the German chemical company BASF signed a preliminary accord to spend up to $10 billion on a second complex in China.

She said the downside risk to growth mainly stemmed from trade tensions.

Mr Trump criticised North Atlantic Treaty Organisation allies' military spending levels as he began his seven-day tour through Europe - one that starts with the North Atlantic Treaty Organisation summit in Belgium and ends with a talk with Russian President Vladimir Putin in the Finnish capital of Helsinki.

The "biggest trade war ever in economic history" between China and the United States officially started on July 6.



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