Trump's trade war with China shifts into high gear Friday

Trump's trade war with China shifts into high gear Friday

Trump's trade war with China shifts into high gear Friday

President Donald Trump says he has tariffs on hundreds of billions of dollars in more Chinese goods ready in his pocket - if it comes to that - while China says the us has launched the biggest trade war in history. USA stocks rose and the dollar extended losses.

A Chinese ministry spokesman said the "US is shooting itself in the foot and hurting the world" with its tariff hikes.

USA pork was already saddled with duties enacted in an earlier round of the trade row and now faces an extra 25 percent tariff that would raise the total charges up to 62 percent. US soybean farmers have been particularly concerned, and the price of soybeans has plunged 17 per cent over the past month on tariff fears.

US Treasuries gained and gold declined as investors assessed the impact of the escalation in the trade rift. "We still expect demand to grow, but those expectations are dampened with each new tariff introduced", IATA Director General Alexandre de Juniac said in a statement.

Companies worry the dispute could chill global economic growth, but Asian financial markets took Friday's developments in stride.

The Shanghai Composite Index fell about 0.3 percent after flirting with two-year lows.

Al Jazeera's Rob McBride, reporting from Beijing, said that while the $34bn in goods "doesn't equate to a huge amount given the size of the world's biggest economies, it is more the gesture and what is might lead to".

Apart from a 25 per cent tariff on US$34 billion worth of US products as a tit-for-tat response to the US move, Gao did not specify what "qualitative measures" China would take if US President Donald Trump followed through on threats to impose tariffs on another US$200 billion worth of Chinese products.

Trump has vowed for years to tackle Chinese trade practices, accusing Beijing of stealing US intellectual property and slammed the $375 billion USA trade deficit with the country.

China accused the United States on Thursday of "opening fire" on the world with tariffs set to take effect on Friday, warning that it will respond the moment that duties on $34 billion in Chinese goods kick in.

Ironically, Cohen says the victims of Chinese IP or intellectual property theft won't benefit from the tariffs. But rules on auto manufacturing and other industries require companies to work through state-owned partners, which forces them to share know-how with potential competitors. Some have responded by hiking their own tariffs on USA goods.

Beijing and Washington have held several rounds of high-level talks since early May, but the Trump administration has said it is considering expanding the list of targeted Chinese imports.

And enduring the pinch isn't going to pay off. Protectionism has historically proven to be destructive for the global economy and won't achieve what the Trump administration is trying to accomplish, said Hsu.

Local trade consultant Stephen Jacobi said he was hopeful that in the short term the dispute wouldn't a direct impact in New Zealand exports which (other than some steel products) were not in the firing line.

The higher US tariffs went into effect just after noon in Beijing (0401 GMT).

The trade spat with China is part of the president's broader plan to renegotiate American trade deals with other countries.

"We want more trade, more business, more investment to be done".

Prices are rising, especially for steel and aluminum, and companies are starting to feel reticent about investments or planning to shift production overseas to avoid retaliation against USA exports.

Trump said in March that trade wars are good and easy to win. "We urge the two governments to come back to the negotiation table".

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