China says tit-for-tat tariffs will 'destroy' US-China trade

Adjust Comment Print

Trump said last week the United States may ultimately impose tariffs on more than $500 billion worth of Chinese goods - roughly the total amount of USA imports from China past year. The move makes good on the president's threat to respond to China's retaliation for the initial USA tariffs on $34 billion in Chinese goods, which went into effect on Friday and would eventually place almost half of all Chinese imports under tariffs.

The abrupt escalation is "totally unacceptable", said a Commerce Ministry statement.

China immediately retaliated with duties on the same value of US goods, including soybeans and cars.

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

Among other things, the U.S.is asking China to roll back its "Made-in-China 2025" program, a signature Xi initiative to dominate several strategic industries, such as semiconductors to aerospace development.

Although it was not a direct reaction to the new move from Trump's administration, the official English-language newspaper China Daily said in an editorial that Beijing had to stand up to Washington.

That "will hit the Chinese export sector hard", said Rajiv Biswas of IHS Markit in a report.

Here's why that could prove a soft spot in the White House's trade strategy: American multinationals have far more extensive operations in China, both in terms of sales and employees, than Chinese companies have in the U.S. There is "considerable scope for China to retaliate by penalizing these firms, for example via much more stringent regulatory checks or consumer boycotts", according to Capital Economics.

The tariff list could be released as soon as Tuesday, and likely this week, the report said.

Man caught on video harassing woman for wearing Puerto Rico T-shirt
The video sparked widespread outrage on July 9. "I am appalled, shocked & disturbed by the officer's behavior", Rossello tweeted . Just a few meters outside the pavilion, an officer stood with his hands tucked in his belt, watching the encounter.

Tne Trump administration has announced additional China tariffs, say insiders.

"Judging from (China's) economic fundamentals and corporate earnings expectations, which are under pressure amid the trade war with the United States, the stock market is yet to reach a bottom", said Yan Kaiwen, an analyst with China Fortune Securities.

"Rather than address our legitimate concerns, China has begun to retaliate against US products".

"Our worldwide trade is extremely important and we have to start off on the right track and I'm not sure we are right now", he said.

Auto parts retailers, which would also be affected by the latest tariff threats the US lobbed at China, fell more steeply than the broader market.

USA financial analysts said Trump appeared to believe there was a political benefit to waging a trade war, although that could change quickly amid economic fallout.

China's government has criticized the latest US threat of a tariff hike as "totally unacceptable" and vowed to retaliate in their escalating trade war. The trade war could also jeopardize China's help in confronting North Korea's nuclear program.

After the list was released, China's Commerce Ministry said in a statement that it could not accept the additional tariffs proposed by the U.S., adding that it was "shocked" by the decision. His determination to renegotiate trade deals has targeted not only competitors on the world market such as China, but longtime friends and allies such as the European Union or Canada.

Comments