Published: Fri, April 06, 2018
Business | By Tara Barton

China Seeks EU's Support in Standing Up to US Trade Threat

China Seeks EU's Support in Standing Up to US Trade Threat

United States President Donald Trump said on Thursday that he has asked trade officials to identify tariffs on an additional $100 billion (Rs 6.5 lakh crore) worth of Chinese imports, the latest in an escalating trade standoff with Beijing, Reuters reported.

In late-morning trading, the Dow Jones industrial average was off its lows and down about 400 points, or 1.6%, led lower buy shares of Boeing and Caterpillar, which are exposed to trade risk via higher exposure to doing business with China. S&P 500 Index futures slid as much as 1.6 percent, after the underlying gauge ended up 0.7 percent Thursday. Asian equities were mixed, while the yen rose before retracing most of the move.

"The latest escalation comes after the US on Tuesday said it would impose 25 percent duties on $50 billion of imports from China, and China quickly retaliated by listing $50 billion of products that it could hit with its own 25 percent tariffs".

"The Chinese side will follow suit to the end and at any cost, and will firmly attack, using new comprehensive countermeasures, to firmly defend the interest of the nation and its people", the Commerce Ministry said in a statement on its website, without further detailing any planned measures.

Financial markets bounced up and down Wednesday over the brewing U.S.

China retaliated Wednesday by announcing plans to impose levies on $50 billion worth of major United States exports such as soybeans, cars and small aircraft.

The move comes a day after China issued a $50 billion list of US goods including soybeans and small aircraft for possible tariff hikes in an escalating and potentially damaging dispute.

Trump's latest tariff threat was met with criticism from members of his own Republican party.

US imposes anti-dumping duties on cast-iron pipe fittings from China.

While much of these don't come from China, the USA trade representative's statement makes clear that Chinese dominance of the global supply chain is a concern.

"We don't want to go down that path".

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He said that any additional tariffs first would be subject to a 60-day public comment period, as would the penalties announced earlier in the week.

Yet Trump signaled a harder line in a speech earlier Thursday, saying it was time to stop China from "taking advantage" of America.

To get a sense of how things might play out for those farmers, the trade tit-for-tat could hit soybean producers in the United States - and possibly around the world. "We have to have some balance".

Chinese officials this week also said they were eager to negotiate.

"China is the main importer (after Canada) of US crude oil, to the tune of about 400,000 barrels per day", Petromatrix said.

U.S. Trade Representative proposes 25 percent duties on Chinese products under section 301 to compensate for the harm caused to the American economy from China's trade and economic policies.

Larry Kudlow, the new director of the National Economic Council, said on Wednesday that "it's possible" Trump's proposed tariffs against China could just be a negotiating tactic.

USA imposes countervailing duties on forged steel fittings from China.

Trade with China is politically sensitive, as the world's second-largest economy runs surpluses against many of its trading partners.

That would hit US farmers hard at a time they are already dealing with depressed crop prices and stagnant values for their land.

"Trump said, 'In many respects, I think we're going to have a fantastic long-term relationship with China".

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