Published: Tue, May 14, 2019
Global Media | By Garry Long

China hits back with tariffs on $91 billion of USA goods

China hits back with tariffs on $91 billion of USA goods

"You had a great deal, nearly completed, & you backed out".

Apple, which is viewed as highly exposed due to its extensive Chinese supply chain and assembly lines in the country, suffered a fall of more than 5pc in early trading, wiping tens of billions of dollars from the company's value. To date, tariffs have largely affected raw materials like chemicals and wooden beams used to make other products, so the cost increases appear incremental to the consumer. "China has promised retaliation and we could see them outline further tariffs on USA exports in the next couple of days as well as the possibility of non-tariff barriers".

The president's denial that US consumers would be affected by the spike in tariffs ran counter to the words of his own economic adviser. But nothing has been scheduled.

"The US administration is expected to give details of tariffs on a further $325bn of Chinese exports to the US as early as today".

The "points" are a reference to the percentage increase in tariffs on Chinese goods, from 4 per cent to 25 per cent, compared to a more modest tariff hike the Chinese have recently enforced in the other direction. "Fox News Sunday" host Chris Wallace pressed Kudlow about this apparent contradiction on Sunday.

"The president has done nothing but increase the tariffs, the debt, and the trade deficit", Biden said in response to a question from a CNN reporter in New Hampshire. -China trade talks end without a deal.

"What that means for soybean growers is that we're losing".

Last week's increase was due to take effect previous year but was postponed after Trump and Xi agreed in December at the last G-20 meeting to hold off while they negotiated.

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Kudlow did hold out a prospect on hope over the ongoing trade war on Sunday when he added that there is a "strong possibility" that Trump will meet Chinese President Xi Jinping at a G-20 summit in Japan in late June.

The president's allies in Congress scrambled to limit the damage to farm country.

Trump said he expects his discussion with Xi to be "very fruitful", as the trade war between China and the United States intensified on Monday.

However, the effects are even worse when countries' retaliatory efforts are taken into account.

Trump stepped up his verbal attacks on China on Friday after two days of high-level trade negotiations in Washington, DC, ended with the two sides in an apparent stalemate. Chinese regulators have instead targeted American companies in China by slowing down the clearing of shipments through customs and the processing of business licenses. "It's the American importers, the American companies, that pay what in effect is a tax increase and oftentimes passes it on to US consumers".

The tensions "raise fresh doubts about this recovery path", Morgan Stanley economists said.

That has "led to an escalation of Sino-U.S. economic and trade frictions", the finance ministry said, adding that U.S. actions "jeopardize the interests of both sides". That would push annual growth below six per cent, raising the risk of politically unsafe job losses.

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