Published: Sat, July 07, 2018
Markets | By Erika Turner

Trump unleashes trade war with latest tariffs on China

Trump unleashes trade war with latest tariffs on China

"China will not bow down in the face of threats and blackmail and will not falter from its determination to defend free trade and the multilateral system".

"The global financial crisis, which ensured that we now act in the framework of the G-20, would never have been resolved so quickly, despite the pain, if we hadn't cooperated in a multilateral fashion in the spirit of comradeship", Merkel said on Wednesday.

The June jobs data show no evidence of trade fears hurting the USA economy, Council of Economic Advisers Chairman Kevin Hassett said in an interview on Friday.

But eventually those costs will take their toll on the average wallet - and it likely won't be simply because of these tariffs. According to tariff supporters, this can help to save jobs that might otherwise go overseas.

"The damage potentially may have already been done with some of these downturns, with some of these stocks, and now is a good time to make a few value plays under the assumption that these trade tariffs might not actually come to fruition", Jasper Reimers, market analyst at Vertex Capital Group, said.

Russian Federation is introducing extra duties on a range of products imported from the USA that can be replaced by locally made equivalents. When products on the list for extra levies are declared to customs, the importer will pay the additional levies.

I view these tariffs as a negotiating ploy by President Trump to try to force the Chinese to open up their market better for American companies.

Friday's tariff hikes are the first stage in threatened USA increases on up to $450 billion of imports from China over complaints Beijing steals or pressures foreign companies to hand over technology.

The taxes target 818 kinds of Chinese products in industries such as aerospace, information and communications technology, robotics, industrial machinery, new materials and automobiles, according to a USTR list released previously.

"You have another 16 (billion dollars) in two weeks, and then, as you know, we have $200 billion in abeyance and then after the $200 billion, we have $300 billion in abeyance. Ok? So we have 50 plus 200 plus nearly 300".

Chinese Commerce Ministry spokesman Gao Feng said that the proposed US tariffs would hit many American and foreign companies operating in China and disrupt their supplies of components and assembly work.

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He added: 'All this nonsense means other players attempt to provoke him even more, and he must be intelligent in these moments. But, Axel Witsel's presence in midfield is vital, meaning Mertens remains the only expendable player in attack.

"The US has provoked this trade war".

The statement did not specify what those countermeasures would entail beyond taking the case to the World Trade Organisation, though the ministry had previously said it would hit back with new border taxes on an equal amount of United States goods.

The tension between these factions is occasionally on display in the West Wing.

This reflects a larger division in the White House: Trump and his closest aides are trying to bring about radical change, while those who support a more cautious approach find themselves sitting in silence.

"China will never fire the first shot", Gao said. "That's impossible. China won't accept that", he said, adding "what happens next depends on the United States".

"Our commodity market and job market are relatively flexible, and our foreign-related economic sectors' ability to make flexible adjustment is more prominent, " said Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, in an interview Thursday with the Chinese financial newspaper Financial News.

While the Chinese government did not immediately announce reciprocal tariffs on USA imports, there are reports that China's General Administration of Customs is delaying clearing USA imports at major Chinese ports.

The Federal Reserve is already picking up signs that the threat of a trade war is causing businesses to rethink investment plans.

"This is not economic Armageddon". We will not have to hunt our food with pointy sticks. "But it is applying the brakes to a global economy that has less durable momentum than appears to be the case", Rob Carnell, chief economist at ING, said in a note.

The U.S. Chamber of Commerce, which strongly opposes the tariffs, says the hit could be $112 million, including aluminum scrap, lobsters and crawfish.

In a fresh sign of industry´s unease, a business survey on Thursday again showed the USA services sector was already experiencing supply chain interruptions and rising costs in anticipation of heightened trade restrictions.

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