Published: Mon, July 09, 2018
Economy | By

USA tariffs take effect, China warns of 'counterattack'

USA tariffs take effect, China warns of 'counterattack'

The oilseed is the top agricultural commodity that the US ships to China by far and is among the largest products for overall exports.

Trump's tariffs on the EU, Canada and Mexico are for as much as 25% on imports of steel and aluminium, which the U.S. has imposed on grounds of national security.

Although Chinese Premier Li Keqiang said on Friday that no one will win by fighting a trade war, China pushed to implement countermeasures against USA tariffs.

China's tariffs on U.S. goods came into effect immediately afterward, a spokesman for the Chinese Foreign Ministry said Friday.

"By threatening unilateral action without having any allies and not reducing domestic discord on trade, the Trump administration has invited China to stand tough", said Scott Kennedy, director of the Project on Chinese Business and Political Economy at the Center for Strategic and International Studies.

Companies worry that the spiraling dispute could chill global economic growth, but Asian financial markets took yesterday's developments in stride. This figure exceeds all of China's annual goods exports to the U.S.

"The US has said that it is prepared to put traffis on hundreds of billions of dollars of more goods and China has said it will match that", he added.

Why is the U.S. imposing tariffs? The cumulative goods trade deficit with China through the first five months of the year totaled $152.2 billion, compared with $138.5 billion in the same period last year.


It further claims that China's industrial policies, such as its "Made in China 2025" plan, harm companies in the United States and around the world.

While US consumers may eventually see higher prices on shelves, there's also a second negative trickle-down effect.

China's average tariff rate is almost three times higher than the average United States rate. This is the time of year, he said, when Chinese soy product producers switch from American soy to Brazilian soybeans as they are further along in their growing season. Jerry Moran, of Kansas, a state heavily dependent on agriculture. It has also dumped and unfairly subsidized a range of goods for the United States market, undermining America's domestic industry.

Trump's decision to trigger a trade war isn't confined to the tit-for-tat exchange with China.

The President is especially upset that the past president has promoted the interests of China at the expense of undermining American innovation and jobs. Instead, he should be talking about reciprocity and allowing American companies the same rights in China that America grants Chinese companies when they try to invest and operate in the United States. China accounts for 87 per cent of counterfeit goods seized coming into the United States.

The paper holds that the tariffs will affect several US sectors, including technology (which Trump says he's trying to protect) while hitting multinational supply chains and firms, as well as harming foreign investment in Chinese firms by allies such as Japan, South Korea, and European Union countries.

Trump and his advisers argue the tariffs are necessary to pressure China into abandoning unfair practices such as stealing intellectual property and forcing American companies to hand over valuable technology. In the run-up to Friday, there was no sign of renewed negotiations between U.S. and Chinese officials, business sources in Washington and Beijing said.

Like this: