Trade skirmish continues to escalate between worlds two biggest economies

The Trump administration has raised the stakes in its trade war with China, saying it would slap 10% tariffs on an extra $200bn worth of Chinese imports.

The administration released a wide-ranging list of Chinese goods it proposes be hit with tariffs, including hundreds of food products as well as tobacco, coal, chemicals and tyres, dog and cat food, and consumer electronics including television components.

For over a year, the Trump administration has patiently urged China to stop its unfair practices, open its market, and engage in true market competition, US trade representative Robert Lighthizer said in announcing the proposed tariffs on Tuesday night.

Rather than address our legitimate concerns, China has begun to retaliate against US products … There is no justification for such action, he said in a statement.

Asian stocks fell in reaction to the tariffs announcement. South Koreas KOSPI lost 1% and Japans Nikkei fell 1.2%. The offshore yuan fell more than 0.5% in early trade on Wednesday. Dow Jones mini futures fell as much as 1% while S&P500 e-mini futures, the worlds most liquid futures, were down 0.8%.

The markets still remain sensitive to the trade-related theme, which is something investors have to take into account for the long term, said Yoshinori Shigemi, global market strategist at JPMorgan Asset Management in Tokyo.

Last week, Washington imposed 25% tariffs on $34bn of Chinese imports, and Beijing responded immediately with matching tariffs on the same amount of US exports to China.

Donald Trump has said he might ultimately impose tariffs on more than $500bn worth of Chinese goods roughly the total amount of US imports from China last year.

Some US business groups and senior lawmakers sharply criticised the latest action on Tuesday, with Senate finance committee chairman Orrin Hatch, a Republican, saying it appears reckless and is not a targeted approach.

Q&A

What is the China/US trade war about?

China and the US officially launched a trade war on 6 July. After months of threats and negotiations, the US implemented tariffs of 25% on $34bn in Chinese goods. Within minutes, Chinas ministry of commerce said Beijing was being forced to fight back.

Chinese officials had promised to retaliate with tariffs on US imports, like soybeans, sorghum, autos, whiskey, and other products.

Chinese policymakers promised the tariffs would have minimal impact, shaving 0.2 percentage points off of GDP. The ministry of commerce pledged to help affected Chinese companies.

On 11 July the US said it would slap 10% tariffs on an extra $200bn worth of Chinese imports, including on hundreds of food products as well as tobacco, coal, chemicals and tyres, dog and cat food, and consumer electronics including television components.

Chinese investors and businesses are nervous. Chinese exporters say they have already been hit by a strengthening yuan that has made their goods more expensive.

The countrys main index, the Shanghai Composite Index, dipped to more than a two-year low in the week the first tariffs were implemented.

Donald Trump has said he may ultimately impose tariffs on more than $500bn worth of Chinese goods roughly the total amount of US imports from China in 2017.

The US chamber of commerce, which has supported Trumps tax cuts and efforts to reduce regulation of businesses, also criticised the administrations move.

Tariffs are taxes, plain and simple. Imposing taxes on another $200bn worth of products will raise the costs of everyday goods for American families, farmers, ranchers, workers, and job creators. It will also result in retaliatory tariffs, further hurting American workers, a chamber spokeswoman said.

The Retail Industry Leaders Association, a lobby group representing the largest US retailers, said: The president has broken his promise to bring maximum pain on China, minimum pain on consumers.

American families are the ones being punished. Consumers, businesses and the American jobs dependent on trade, are left in the crosshairs of an escalating global trade war, said Hun Quach, the head of international trade policy for the group.



19 COMMENTS

  1. Hey, how’s it going?

    I want to pass along some very important news that everyone needs to hear!

    In December of 2017, Donald Trump made history by recognizing Jerusalem as the captial of Israel. Why is this big news? Because by this the Jewish people of Israel are now able to press forward in bringing about the Third Temple prophesied in the Bible.

    The Jewish people deny Jesus as their Messiah and have stated that their Messiah has been identified and is waiting to be revealed. They say this man will rule the world under a one world religion called “spiritualism”.

    They even printed a coin to raise money for the Temple with Donald Trumps face on the front and with king Cyrus'(who built the second Temple) behind him. On the back of the coin is an image of the third Temple.

    The Bible says this false Messiah who seats himself in the Third Temple will be thee antichrist that will bring about the Great Tribulation, though the Jewish people believe he will bring about world peace. It will be a false peace for a period of time. You can watch interviews of Jewish Rabbi’s in Israel speaking of these things. They have their plans set in place. It is only years away!

    More importantly, the power that runs the world wants to put a RFID microchip in our body making us total slaves to them. This chip matches perfectly with the Mark of the Beast in the Bible, more specifically Revelation 13:16-18:

    He causes all, both small and great, rich and poor, free and slave, to receive a mark on their right hand or on their foreheads, and that no one may buy or sell except one who has the mark or the name of the beast, or the number of his name.

    Here is wisdom. Let him who has understanding calculate the number of the beast, for it is the number of a man: His number is 666.

    Referring to the last days, this could only be speaking of a cashless society, which we have yet to see, but are heading towards. Otherwise, we could still buy or sell without the mark amongst others if physical money was still currency. RFID microchip implant technology will be the future of a one world cashless society containing digital currency. It will be implanted in the right-hand or the forehead, and we cannot buy or sell without it! We must grow strong in Jesus. AT ALL COSTS, DO NOT TAKE IT!

    Then a third angel followed them, saying with a loud voice, “If anyone worships the beast and his image, and receives his mark on his forehead or on his hand, he himself shall also drink of the wine of the wrath of God, which is poured out full strength into the cup of His indignation. He shall be tormented with fire and brimstone in the presence of the holy angels and in the presence of the Lamb. And the smoke of their torment ascends forever and ever; and they have no rest day or night, who worship the beast and his image, and whoever receives the mark of his name.” (Revelation 14:9-11).

    People have been saying the end is coming for many years, but we need two key things. One, the Third Temple, and two, the technology for a cashless society to fulfill the prophecy of the Mark of the Beast.

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