Trump launches $34 billion trade war and China ‘immediately’ fires back

Trump launches $34 billion trade war and China ‘immediately’ fires back

Trump launches $34 billion trade war and China ‘immediately’ fires back

The US and China on Friday launched tit-for-tat tariffs on each other's imports, the opening shots in what Beijing called "the largest trade war in economic history" between the world's top two economies.

China's commerce ministry earlier said the country has no choice but to fight back after the USA "launched the largest trade war in economic history." . For example, the U.S. government wants China to rein in government subsidies for policies like "Made in China 2025", which seeks to pump hundreds of billions of dollars into industries such as robotics, electric cars and computer chips with the aim of becoming a global leader.

This prompted Beijing to respond with levies on U.S. imports.

The president also takes issue with the size of the United States trade deficit with China.

The foreign ministry in Beijing said retaliatory measures "took effect immediately" with state news agency Xinhua confirming they were also 25-per cent tariffs on an equal amount of goods. It gave no immediate details of possible retaliation but Beijing earlier released a target list of American goods for duty increases including soybeans, electric cars and whiskey.

Speaking to reporters late Thursday en route to a campaign-style rally in Montana, just before tariffs on U$34 billion worth of Chinese imports were set to go into effect, Trump said there are more to come.

The United States president went on to threaten Beijing with escalating tariffs on as much as $450 billion worth of Chinese goods.

Since 1996, when the USA exported only $414 million worth of soy to China, the crop has sprouted an exponential growth in trade.

Last month, the European Union imposed tariffs on American goods worth United States dollars 3 billion such as yachts, bourbon and motorcycles. "The real battle will be on the flanks", in unnecessary inspections, quarantines, and heightened scrutiny, said James Zimmerman, a partner in the Beijing office of Perkins Cole LLP, an global law firm, the Post reported.

Though worldwide demand for US soybeans is unlikely to decline in the near future, said Hurst, a trade war may push China and other soybean-producing countries, such as Brazil, to invest more heavily in soybean production.

Dismissing any concern about the trade war between the two countries, Jiang said, "We are not so anxious because first of all, we have a big price advantage over our competitors".

These initial tariffs are unlikely to inflict serious harm to the world's two biggest economies.

Beijing has accused the USA of starting the "largest trade war in economic history".

"The Trump administration is behaving like a gang of hoodlums with its shakedown of other countries, particularly China", said an English-language article in the China Daily.

US Customs and Border Protection officials have started collecting 25 percent duties on a range of products coming in from China including motor vehicles, computer disk drives, parts of pumps, valves and printers and many other industrial components.

In the long run, growth in global economy would slow down due to feared fall in demand which would not be good for Bangladesh economy, Mansur said. Beijing called it the beginning of "the biggest trade war in economic history" and retaliated with tariffs on billions of dollars worth of USA exports.

The tariffs would mark a significant escalation in the trade dispute between the world's two biggest economies.

"China is engaged in industrial policies and theft of intellectual property that merits a response, but across the business community we feel that tariffs are not the answer", John Murphy, senior vice president for worldwide policy at the U.S. Chamber of Commerce, told CNBC.

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