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China Trade War Heats Up As Tariffs Take Effect
11 July 2018, 10:03 | Darnell Patrick
LEADING ARTICLEJuly 6 2018 12:01am The Times Trading InsultsTrump’s protectionist policies put global growth at risk
They kicked in just after midnight ET, which is noon in Beijing. The president said USA tariffs on an additional $16 billion in Chinese goods are set to take effect in two weeks.
US energy, agricultural and chemicals companies are girding for a summer standoff over trade as a midnight deadline approaches for Washington to impose the next round of tariffs on a wide range of Chinese goods.
Beijing insists it's the injured party.
"China promised not to fire the first shot, but in order to defend the core interests of the country and the interests of the people, we are forced to take the necessary countermeasures", China's commerce ministry said in a statement. It accused the United States of "typical trade bullying".
That would bring the total of targeted Chinese goods to potentially $550 billion - more than the $506 billion in goods that China shipped to the United States past year.
The trade war that erupted Friday between the US and China carries a major risk of escalation that could weaken investment, depress spending, unsettle financial markets and slow the global economy.
Gao pointed out that China is an important supporter and participant in economic globalization and the global industrial chain, and many of its export commodities are products made by foreign enterprises in China. "Soybean demand is there, and it's really, really big as soybeans go into different channels".
A China central bank adviser said the planned USA import tariffs on $50 billion worth of Chinese goods - $34 billion plus a planned follow-on list worth $16 billion - will cut China's economic growth by 0.2 percentage points, although the overall impact would be limited, the official Xinhua news agency reported Friday. The rest of the world would suffer collateral damage, even if the United States were to refrain from penalising imports from other countries.
'There should be no doubting Beijing's resolve, ' the newspaper said.
She notes, "80 percent of "red" states produce goods subject to retaliatory tariffs totaling 10 percent or more of GDP, compared to 10 percent of "blue" states".
Soybean farmers, apple growers and auto workers are among the USA workers bracing for fallout from a trade war between the United States and China.
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China's exports to the United States increased by 5.4 percent in the first half, 13.9 percentage points slower than the same period previous year, customs data showed.
Even if the trade disputes worsen, the harm to the US economy will probably be limited for the next few months.
With no official talks scheduled between the two countries, and disagreements within the Trump administration about how best to proceed, a quick resolution seems increasingly unlikely, the New York Times reported. It also is rooted in the clash between American notions of free trade and Beijing's state-led development model.
Besides affecting "innocent" transnational companies, the tariffs will also hurt ordinary companies, global consumers, as well as USA enterprises and consumers, the Chinese ministry added. The principles underlying the trade policies of New Delhi and President Trump unfortunately are similar - and they are both wrong.
For the time being, analysts say it's hard to see Washington or Beijing backing down in the dispute.
President Trump has taken long overdue action to finally address the source of the problem by addressing China's unfair trade practices that hurt America's workers and its innovative industries.
Amidst a trade war between the USA and China, a Chinese company is manufacturing flags for President Donald Trump's 2020 re-election campaign, a media report said.
The strength and size of both economies means the fight could rage on for years.
The president has said trade wars could be good for the economy - and "easy to win".
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