Sino-US Trade War Begins

Sino-US Trade War Begins

Al Jazeera's McBride said that the looming trade war has not played well "to the general business sentiment".

China's commerce ministry said in a statement shortly after the deadline passed that it was forced to retaliate, meaning $34 billion worth of imported USA goods, including autos and agricultural products also faced 25 per cent tariffs.

The foreign ministry in Beijing said retaliatory measures "took effect immediately" with state news agency Xinhua confirming they were also 25-per cent tariffs on an equal amount of goods.

Punishing US tariffs on Chinese imports took effect on Friday, the first shot in what Beijing called "the largest trade war in economic history" between the world's top two economies.

"Tariffs will negate gains made by the public from tax reforms and deregulation, push up US production costs, damage the competitiveness of businesses and their workers, and force companies to look outside the U.S.to maintain production".

And, three, the likelihood of lower global growth, triggered by a trade war and the prospect of supply disruptions, could cause share prices to tank, initiating a flight of capital from emerging markets to the safety of the home market, making currencies and interest rates move in wholly undesirable ways. On Thursday aboard Air Force One, the president vowed to implement tariffs on an additional $16 billion worth of imported Chinese goods within the month.

Despite three rounds of negotiations between the two sides, including a Chinese pledge to significantly increase purchases of American products, Trump made a decision to go ahead with the tariffs. US soybean farmers have been particularly concerned, and the price of soybeans has plunged 17 percent over the past month on tariff fears.

Foreign companies accounted for $20 billion, or 59%, of the $34 billion of exports from China that would be subject to new U.S. tariffs, with United States firms accounting for a significant part of that 59%, Gao said.

Reprising the tactic he used against steel and aluminum imports, Trump in May ordered the Commerce Department to investigate whether imported vehicles and auto parts pose a threat to USA national security that justifies tariffs.

Ex-Real Boss: Los Blancos Should Sign This Star Instead Of Neymar
Portugal's desire to go past the round of 16 however hit the rocks after they were edged out by Uruguay, following a 2-1 defeat. However, Ronaldo backtracked on those comments in the days following, and has not spoken about his club future since.

Amid the escalating commerce conflict, the United States seeks China's help with North Korea, which, according to recent American intelligence reports, continues to build its nuclear program.

Mr Trump has already imposed tariffs on imported washing machines and solar panels, and started charging levies on the imports of steel and aluminium from the European Union, Mexico and Canada. "And the impact on USA business, in my estimation, will be substantial".

China has accused the United States of "opening fire" on the world with tariffs that took effect Friday, warning that it would respond the moment that duties on $34 billion in its products kick in.

Acadiana soybean farmers are bracing for the worst case scenario after China imposes tariffs on American products.

Trump has charged the country with stealing USA intellectual property and for subsidizing steel to artificially low prices, giving it unfair trade advantage.

"Its unruliness looks set to have a profoundly damaging impact on the global economic landscape in the coming decades, unless countries stand together to oppose it".

Top trade representatives from China and the US have held trade negotiations in recent months.

Trump repeatedly has slammed what he describes as Beijing's underhanded economic treatment of the United States.

Canatella says he hopes the tariffs are resolved before harvest season starts in October.

Related Articles