New tariffs as trade war escalates

Frederick Owens
September 23, 2018

Earlier this week, Trump escalated his trade war with China by imposing 10 percent tariffs on about $200 billion worth of Chinese imports, including consumer products like gas grills, luggage and travel bags, mattresses and helmets.

Prior to its announcement of the new tariffs, which will target American goods such as liquefied natural gas, the Chinese ministry of commerce said it had no choice but to retaliate. These tariffs will also go into effect September 24, 2018.

Beijing responded by announcing new tariffs on US$60 billion of USA imports to take effect at the same time. Chinese leaders could easily engineer a further slide in the yuan. He renewed the Korea-U.S. free trade agreement, struck a tentative deal with Mexico and papered over differences with the European Union. -China dispute would soon be resolved.

"We urge the Chinese government to implement a quick series of bold reforms that send a clear signal to its trading partners and members of the Chinese Party", said Allen. "Otherwise, the U.S. has to bear the consequences", the ministry's spokesperson stressed.

"What the United States is doing shows no goodwill and no sincerity", Geng said at a daily briefing in Beijing. To counter China's unfair practices, on June 15, I announced that the United States would impose tariffs of 25 percent on $50 billion worth of Chinese imports. It's the same for the U.S. Can American firms avoid using China products? "If you ask the question a week from now, things will be even more in favor of China". Stop favoring Chinese companies over US and other foreign competitors. "Lower-income families, already pinching pennies, are most exposed, given the likelihood of tariff-related price increases on everyday items". But it also has threatened "comprehensive measures" as it starts to run out of American imports for retaliation due to the countries' lopsided trade balance.

Even if the two countries reach a deal, it will take time for China to prove that it is living up to commitments to treat foreign companies more fairly, something the US says Beijing has repeatedly promised and failed to do in the past. Trump accused China of seeking to influence knife-edge midterm congressional elections by taking aim at his political base in the economic giants' rapidly escalating trade war.

This nonsense is going to go on for a long time, and everybody will end up at least slightly poorer, but it probably won't bring on the Second Great Recession.

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Li promised Beijing will refrain from weakening its currency to stimulate exports.

The White House's newest tariffs will reportedly make more than 100 additional auto parts more expensive, and the president has threatened to raise the rates on those tariffs. The same applies to potential USA job losses due to declining exports to China: they won't happen fast enough to have any impact on November's mid-term elections in the United States.

Some smaller companies worry they could go out of business entirely.

"China has always managed to find the proper solutions to put its economy back on track", the China Daily said. "It was like a rocket ship, because they took advantage of the rules of the WTO", he asserted.

Trump officials perceived the offers from Beijing-largely involving more Chinese purchases of USA agricultural and other products-as inadequate in addressing the White House's demand for a fairer playing field for American businesses in China.

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