Published: Thu, July 12, 2018

Trump administration cuts grants that help consumers get ACA coverage

Trump administration cuts grants that help consumers get ACA coverage

Soybeans, crushed to make cooking oil and the protein-rich animal feed ingredient soymeal, were the biggest US agriculture export to China previous year at a value of US$12.3 billion, according to the US Department of Agriculture. US crude oil futures settled down 5 percent on the trade dispute escalation and as expectations of growing supplies increased on news that Libya would reopen ports. He said the politicians respond, "Please, leave it the way it is".

The new list published on Tuesday targets many more consumer goods than those covered under the tariffs imposed last week, raising the direct threat to consumers and retail firms.

Members of Congress are increasingly questioning Trump's aggressive trade policies, warning that tariffs on imports raise prices for consumers and expose United States farmers and manufacturers to retaliation overseas.

"Special Report" panel reacts to the strategy behind the Trump administration's new charges on Chinese products.

The fight with China comes as Mr. Trump is also locked in a trade war with Canada, Mexico, the European Union and other USA allies.

Investors have been particularly anxious that the trade row could harm an already slowing Chinese economy in a blow to global investment and growth.

After the list was released, China's Commerce Ministry said in a statement that it could not accept the additional tariffs proposed by the United States, adding that it was "shocked" by the decision.

"I am curious to see what China does to retaliate in the coming days".

The abrupt escalation is "totally unacceptable", said a Commerce Ministry statement. "The U.S. side ignored the progress, adopted unilateral and protectionist measures, and started the trade war".

Grassley said the Trump administration tariff fight has "a very detrimental effect on current markets" and that the impact is rippling through other industries in his state beyond agriculture.

China's commerce ministry said on Wednesday it was "shocked" and would complain to the World Trade Organisation, but did not immediately say how Beijing would retaliate in the dispute between the world's two biggest economies.


Overnight, Donald Trump began the process of slapping 10% tariffs on a further $200bn of imports from China, on top of the $34bn (soon to be $50bn) imposed last week.

The move drew immediate condemnation from Senate Finance Chairman Orrin Hatch, a Republican from Utah, who called it "reckless" and not "targeted".

The US Chamber of Commerce has supported Trump's domestic tax cuts and efforts to reduce regulation of businesses, but it has been critical of Trump's aggressive tariff policies. Other high-profile items such as mobile phones have so far been spared. China responded to that action by imposing tariffs on $34 billion of USA products, and the country has vowed to take countermeasures against the current action as well.

Chinese 10-year treasury futures for September delivery, the most-traded contract, gained 0.34 percent to 95.830.

Lighthizer said last night: "For over a year, the Trump administration has patiently urged China to stop its unfair practices, open its market, and engage in true market competition".

'We can not turn a blind eye to China's mercantilist trade practices, but this action falls short of a strategy that will give the administration negotiating leverage with China while maintaining the long-term health and prosperity of the American economy'.

Although the looming elections provide an immediate concern for Trump, a trade war poses a more existential concern for Xi, whose Communist Party has built its legitimacy on economic success.

China Daily said in an editorial that Beijing had to stand up to Washington. Since abolishing presidential term limits, Xi has strengthened his control over the levers of power and money in China and can't afford to look weak.

Morgan Stanley told clients in a research note on Wednesday that the trade conflict is "creating earnings noise and eroding gains from fiscal stimulus, which we think was already in the price".

-With assistance from Jenny Leonard, Andrew Mayeda and Bryce Baschuk.

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