Trump's Tariffs Hit China, China Fires Back

Pauline Gross
July 11, 2018

Speaking to reporters late Thursday en route to a campaign-style rally in Montana, just before tariffs on U$34 billion worth of Chinese imports were set to go into effect, Trump said there are more to come.

Trump has promised another round of tariffs on $16 billion of additional Chinese goods if China follows through with its threat to retaliate.

Many products have suddenly become more expensive. If demand drops, jobs will be in jeopardy.

Ballpark estimates from economists show that every $100 billion of imports affected by tariffs chip away around 0.5 per cent of global trade, wiping off 0.1 percentage points of GDP growth.

As the trade war goes on, or even grows, in the next few months, movement in those two approval numbers will likely reveal a lot about the fate of Trump's presidency.

But the thing is some say the trade war started this morning, and in a war, it's not always calm or controllable or rational.

"Soybeans are the top agriculture export for the United States, and China is the top market for purchasing those exports", Heisdorffer said in the statement. "The math is simple".

Dennis Riggs, 63, who farms south of Sidney, said numerous investments he has been wanting to make on his farm are now "out of the question", because China launched its own set of tariffs on American goods like soybeans, corn, pork and poultry in retaliation.

"John Heisdorffer, an Iowa soybean farmer and president of the ASA, warned of the impact of the tariffs on farmers". "Frustration is growing quickly in the heartland, we need this solved now".

General Motors now sells more cars in China than it does in the U.S. - and many other iconic American brands now derive a large proportion of revenue from the fast-growing Chinese market.

"You have to put all of this into context", Castaneda said in an email. "The cash price for USA soybeans recently fell to its lowest level in about a decade", they wrote. "The market probably had built that expectation in already and today we're seeing a nice rebound". "All that is gone now".

And he has subjected most of America's trading partners to tariffs on steel and aluminum.

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China may start limiting the number of big-spending tourists and its 350,000 students that head to the USA each year, which would have a big impact on the American market.

-Chinese tensions, Zarit said. And the nation has already become the U.S. apple industry's sixth-largest export market, according to Grondine.

And Trump is considering a 25 percent tariff on imported cars that could cost consumers on average $5,800 per foreign vehicle, according to the Association of Global Automakers, which includes the Big Three automakers in metro Detroit.

"This will impact growers coast to coast", Grondine said.

There are fears that the tariffs will hit U.S. jobs as well. China has also brought a suit against the USA over the imposed tariffs in the World Trade Organisation on Friday.

"China would never start a trade war but if any party resorts to an increase of tariffs then China will take measures in response to protect development interests".

USA companies that do a lot of business there have seen steep drops in their stock prices over the past few weeks.

Tom Cruise films, Starbucks coffee, the iPhone X and the Buick are all best-sellers in China and authorities could find all sorts of ways to make life hard for them, says Louis Kuijs, Asia analyst at Oxford Economics.

What sparks most worries is that China has shifted its focus to Russian Federation by nearly tripling soybean purchases from its northern neighbor. There are unlikely to be any winners in a trade war.

The list avoids direct tariffs on consumer goods such as cellphones and footwear.

"Meanwhile, American consumers will pay more for cars and health care due to USA tariffs on Chinese-made auto parts and medical instruments", they continued.

Other reports by GizPress

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