Published: Sat, April 07, 2018
Global Media | By Garry Long

Trump trade chief rejects talk of 'World War III' with China

Trump trade chief rejects talk of 'World War III' with China

The stock market was closed when the White House released Trump's statement about the $100 billion in additional tariffs, but Dow futures tumbled over 300 points, a sign that markets are likely to open down Friday and that Wall Street traders believe a trade war is growing increasingly likely.

Sanders said that the problem has arisen because of China and President Trump was not to be blamed for.

On Thursday Trump responded to Beijing's countermeasures by doubling down. While talking media reporters, Chinese Vice Minister of Commerce Wang Shouwen said, "China does not want a trade war, as there will be no winners".

U.S. Trade Representative Robert Lighthizer said Thursday Trump was "right to ask for additional appropriate action to obtain the elimination of the unfair acts, policies, and practices identified in USTR's report".

BEIJING/WASHINGTON-China would win any trade war with the United States, the country's state media said on Thursday, as US officials sought to ease market jitters over escalating tensions between the world's two biggest economies. Meanwhile, the battle of will and ego has already had such a big impact and significant harm on both American's and China's markets for the past few days. But the president's drastic and swift proposal to increase proposed tariffs against China doesn't bode well for negotiations.

A "request for consultations" is the first step in a full-blown legal challenge at the WTO's Dispute Settlement Body.

Trump announces import tariffs of 25% on steel and 10% for aluminum, but exempts Canada and Mexico and offers the possibility of excluding other allies. Should the tariffs go into effect, however, they would make for one of the largest trade wars ever involving the United States, said Gary Clyde Hufbauer, a trade expert at the Peterson Institute for International Economics.

Trade-offs or trade war?

USA stocks end with massive selloff after trade war fears
Nixon, of Northern Trust, said businesses also support the idea of making changes in America's trade relationship with China. China is the biggest buyer of US soybeans, picking up about a third of the entire USA crop.

Some of the goods that are meant to have tariffs imposed are machinery and electronics, stainless steel, iron products, aluminum alloy, hydraulic and gas turbines, aircraft propellers, dryers, water heaters, dishwashers and textile machines.

These tariffs would come on top of separate duties on $50 billion in USA imports of Chinese products like motor vehicles and home appliances that the administration announced earlier this week. China's government said earlier its imports of those goods past year totaled $3 billion. In the currency markets, the U.S. dollar fell against the Japanese yen.

Offloading just a portion of that debt could spook bond markets and send America's cost of borrowing soaring.

Trump's latest threat was met with criticism from members of his own Republican party.

"We are on a unsafe downward spiral and American families will be on the losing end", Shay added in a statement, urging Trump "to stop playing a game of chicken with the United States economy". "Let's absolutely take on Chinese bad behaviour, but with a plan that punishes them instead of us". Nebraska Senator Ben Sasse called the move "the dumbest possible way to do this". China ran a $375 billion goods trade surplus with the United States in 2017. "The U.S. risks isolating itself from global trade in this process and we think the U.S., Dollars and U.S. asset markets have more to lose".

"We are not taking any options off the table", Gao Feng, spokesperson with the MOC, said at a press briefing Friday.

The U.S. trade representative called Trump's response "appropriate" given what he calls China's "unjustified tariffs".

President Trump's $100bn announced on Thursday should be added to the $50bn that triggered this spiral.

Like this: