Trump slaps China with $60bn tariffs

Trump slaps China with $60bn tariffs

Trump slaps China with $60bn tariffs

Driving the market tumult was President Trump's decision Thursday to follow through on his threats to slap tens of billions of dollars in tariffs on Chinese imports to the US, a move that prompted Beijing to retaliate and announce plans to impose tariffs on many American-made goods, including fruits, nuts and wine, entering China.

China could slap tariffs on $3 billion worth of United States goods in the latest move to increase trade tensions between the two countries.

"The upshot is that today's (U.S.) tariffs amount to no more than a slap on the wrist for China", Mark Williams, Chief Asia Economist at Capital Economics, wrote in a note.

The American Chamber of Commerce in Shanghai, which says it will provide input to Washington's proposed tariffs on behalf of its 3,000 members, urged the Trump administration to "not to impose tariffs as its principal response" to China's trade practices while prodding Beijing to "take meaningful action" to facilitate free trade.

Although the plan proposes tariffs on $50 billion in Chinese imports and to limit Chinese investment in the USA, it invites input from a wide swath of US industries that have voiced opposition to the trade measures.

The week's carnage, however, was dominated by the fight over trade involving the two biggest economies in the world: the US and China. "We are confident in our capability to face up to any challenge", the Commerce Ministry said.

When the US offered the country the chance to negotiate a solution to resolve the situation and fix their relationship with the USA they, instead, denied it.

Lighthizer identified the countries initially exempted from the steel and aluminum tariffs in response to a question from Sen.

Michael Pillsbury, director of the Center for Chinese Strategy at the Hudson Institute in Washington, said Xi had turned to respected veterans of diplomacy with the United States by elevating Liu, who studied at Seton Hall and Harvard, and Wang Qishan, the new vice president, who has long-standing ties with Wall Street. Trump's announcement comes a seven-month investigation into the intellectual property theft, which has been a longstanding point of contention in US-China trade relations, CNN reported. Investors may have been particularly skittish after Trump looked into the camera during the signing and told the world, "This is the first of many".

Alex Capri studies worldwide trade at the National University of Singapore.

In a move to punish Beijing for stealing American technology, the White House set in motion tariffs on up to $60 billion in Chinese imports and restrictions on new Chinese investment in the U.S. "Even so, it remains way short of his campaign pledges and-at a maximum-will shave a fraction of a percent off Chinese GDP over a number of years". A 25 percent tariff on pork and aluminum imports is also being considered. The proposed product list will include items in aerospace, information and communication technology and machinery. This waiting periods will give industry lobbyists and United States lawmakers a chance to water down a proposed target list that runs to 1,300 products, many in technology sectors. Previous measures against steel, aluminum and solar panels have applied to imports from other countries too. Its ministry of commerce said it planned to impose a 15% duty on 120 types of USA products, like fruits, nuts, wine and seamless tubes, worth $977 million, and a 25% levy on other products, including pork and recycled aluminum. After evaluation, China could then implement tariffs of 25 percent on around $2 billion worth of product imports, including pork and aluminum.

Why has the U.S. made a decision to impose these economic tariffs on China?

Business Roundtable said unilaterally imposing tariffs or other restrictions without a long-term strategy to bring about reforms in China will only raise prices in America, make American companies and products less competitive, and harm U.S. workers and consumers. They expressed frustration that their efforts could be damaged with tariffs. "The direct macro impact tends to be limited".

As Australian shares tumbled, Prime Minister Malcolm Turnbull played down fears of a full-scale global trade war. But he declared the US would emerge "much stronger, much richer". Central bankers have also sounded warnings.

However, Mr. Liu said the investigation report "violates worldwide trade rules and is beneficial to neither Chinese interests, US interests nor global interests", Xinhua cited him as saying.

The U.S. can ill-afford to see weaker demand for its debt from its major buyers.

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