Published: Tue, April 03, 2018

China slaps retaliatory tariffs worth US$3b on 128 United States imports

China slaps retaliatory tariffs worth US$3b on 128 United States imports

"Everybody is bracing for that", Kleintop said of expected US tariffs on $50 billion to $60 billion a year of imports from China that will likely intensify U.S.

The size of Beijing's retaliation-tariffs on about $3 billion of goods-indicates the direct impact of Washington's steel tariff is also not enormous. "As the world's two largest economies, cooperation is the only correct option". It's also imposing a new 15 percent tariff on 120 other imported U.S. commodities, from almonds to apples and berries. China, along with a number of other trading partners, claim the tariffs are a violation of worldwide trade laws.

Timothy Fiore, who oversees a monthly survey of the United States manufacturing companies for the Institute of Supply Management, said Trump's new tariffs were driving up supply costs for manufacturers which use steel and aluminum. Those are the same levels put in place by President Trump on aluminum and steel.

Yet, the offices of senators like Democratic Whip Richard J. Durbin and Democrat Tammy Duckworth of IL did not respond to a request for comment on China's retaliation. The China tariffs were originally proposed 10 days ago, leading to speculation over whether Beijing would actually implement them. A slew of new taxes on USA fruits and nuts could force China's middle class to look elsewhere for affordable health foods.

Fresh and dried fruits, almonds, pistachios and wine would be subject to an additional 15 per cent tariff.

American farm exports to China in 2017 totalled almost $20 billion, including $1.1 billion of pork products. But a bigger clash looms over Trump's approval of possible higher duties on almost $50 billion of Chinese goods in a separate argument over technology policy. This plan calls for 16.5 million tons of ethanol, which requires almost 50 million tons of corn to produce. It could likewise find other suppliers for soy, even if China now relies most heavily on American producers. Experts believe the Chinese market will be unable to meet the demand for domestically produced ethanol.

The trade barriers Trump issued to prop up the steel and aluminum industries will end up increasing costs for thousands of downstream businesses-by one count, there are 46 American jobs in steel-consuming industries for every steel-producing job in the country.

Oil has risen from a multi-year low near $27 in January 2016, helped by production cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and Russian Federation, which started in 2017 and are due to run until the end of 2018. Trump has said his trade threats are meant as a way of negotiating. United States pork producers worry that the 25% tariff on pork could have a significant impact on rural America. The move will affect $3bn of USA imports. If worldwide companies want to operate in China they must hand over their intellectual property for the privilege, thus delivering the likes of German high-speed rail technology into the hands of Chinese engineers.

Some of the largest USA pork producers are actually Chinese owned companies.

But Trump also has more measures in the works aimed specifically at China.

The Chinese Finance Ministry said it was responding to a USA tariff hike on steel and aluminum that took effect March 23.

In November, President Donald Trump claimed a win when he returned from his Asia tour touting $250 billion in deals with China.

"Any restriction on export markets is not a good development for USA pork producers", Jim Monroe, a spokesman for the National Pork Producers Council, told the BBC. Washington has said they will also take steps to limit Chinese investment into United States tech.

"The new bearish narrative is that tariffs implemented by the Trump administration will spur a global trade war that would spiral the world into a recession", Nick Raich, CEO of the investment analysis website The Earnings Scout, tells CNBC. - Boeing announced that it would sell about $37 billion worth of planes to a government holding company that buys jets for state-owned carriers such as Air China and China Southern Airlines. The products amount to about $3 billion a year, a relatively small number. China is internationally famous for stealing technology from other nations and paying no heed to intellectual property rights.

Sometime this week, the Trump administration is expected to unveil a list of Chinese goods that could be subjected to new USA tariffs.

"American politicians better realise sooner rather than later that China would never submit if the U.S. launched a trade war", said the Global Times, a newspaper published by the ruling Communist Party. "There will be rounds after rounds of trade wars in the future".

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