In tit-for-tat, Trump threatens more tariffs against China

Jun 22, 2018, 06:59
In tit-for-tat, Trump threatens more tariffs against China

Asian markets slid to recent lows and Chinese exchanges dropped dramatically, after President Trump threatened China with tariffs on $200 billion in products, renewing fear of an all-out trade war that could hit the global economy.

Over the weekend, China retaliated against the USA imposition of 25% tariffs on $34bn of Chinese goods, by targeting the same value of imports. The Chinese government responded with same coin.

The impact will be small - even if the US tariffs are tripled, as the Trump administration has threatened - amounting to probably "well under" half a percent of GDP for China.

In a statement, Trump said he had US Trade Representative Robert E. Lighthizer, to draw up a list of $200 billion in Chinese products that will be hit with tariffs of 10 per cent if China refuses his demands to narrow the yawning American trade deficit and change its industrial policies.

Miffed by Pompeo's comments, China today hit back saying that the United States is making allegations to cover up its unilateral protectionist policies. The decision is full of many key rural territories in trumpist vote.

"Let's make no mistake that the root cause of the problem started here in China", Harborn said, referring to Chinese industrial policies that foreign businesses have long decried as discriminatory. Hence 200 billion on table.

The battle between Trump and Beijing has kicked into high gear over the past week.

Investor concerns surrounding the implications of confrontation between China and the US returned just as the Federal Reserve this month signaled a faster pace of policy tightening and the European Central Bank said it will maintain it key rate until the second half of next year. The authorities leave door open, refore, not only to approval of tariffs on American products, but also to or actions that harm interests of United States in China.

"The on-again off-again possible global trade war is looking to be back on again as the USA and China announced tariffs on each other's imports", said Nick Twidale, Sydney-based analyst at Rakuten Securities Australia.

But Wang Jun, the Beijing-based chief economist at Zhongyuan Bank, thinks China and the United States have entered a "talk and fight" era in which trade frictions will become normal and the impact will be unavoidable.

"Such practice of imposing extreme pressure and blackmailing is contrary to the consensus the two sides have reached through rounds of consultations, and disappoints the global community", a Ministry of Commerce spokesperson said. -Chinese dispute but share the complaints of their American counterparts about market barriers and unfair regulation.

The New Yorker warned that he will not lower his revolver in what seems to be a full-fledged duel.

Analysts also say the direct impact of the tariffs may be limited, especially for the United States economy, which is in decent shape.

But Asia's other trade-reliant economies and companies plugged into China's supply chains are anxious they will suffer collateral damage if world trade slows down, hurting global growth and dampening business confidence.

In the bond market, treasuries benefited from their appeal as a safe haven amid the trade war concerns.

In first compasses, commercial war was declared with a lot of noise and few walnuts, ie with thick sentences of Trump, but reduced economic figures.

The Trump administration is using the threat of new tariffs after its efforts to deter Chinese intellectual property theft were met with retaliation from the Chinese government, according to The Associated Press. The stage of gestures is over, current figures are total war.

In overseas trading, stock markets across the Asia-Pacific region moved significantly lower during trading on Tuesday.

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