Published: Mon, July 09, 2018
Business | By Tara Barton

Amidst trade war, 'Made in China' flags for Trump's 2020 poll campaign

Amidst trade war, 'Made in China' flags for Trump's 2020 poll campaign

The president said USA tariffs on an additional $16 billion in Chinese goods are set to take effect in two weeks.

Minutes later, China's Commerce Ministry issued a statement, saying that "the United States has violated World Trade Organization rules and waged the biggest trade war ever in economic history". We buy stuff from America, and America is buying stuff from China.

"We can probably say that the trade war has officially started", Chen Feixiang, professor of applied economics at Shanghai Jiaotong University's Antai College of Economics and Management, told Reuters.

Companies worry that the spiraling dispute could chill global economic growth, but Asian financial markets took yesterday's developments in stride.

"A trade war benefits no one, because it hurts free trade and the multilateral process", Chinese Prime Minister Li Keqiang (李克強) told a summit with 16 EU and Balkan countries in Sofia. The US has also slapped tariffs on imports from Canada, Mexico and the European Union and Trump has threatened/tweeted that he might impose higher tariffs on auto imports from the EU.

He said China imposes contractual restrictions on the licensing of intellectual property and technology by foreign firms into China, but does not put the same restrictions on contracts between two Chinese enterprises.

Peak Pegasus, together with numerous other trade companies and businessmen, will become the victims of this trade war.

"I've watched for too many years. how we always end up taking the brunt of most trade deals", he said.

Canatella says since the trade dispute began, he's lost about $100,000 dollars just because of market uncertainty.

China's average tariff rate is almost three times higher than the average United States rate. China's tariffs similarly totals to $34 billion. The U.S.is effectively requiring Chinese leaders to abandon or scale back a high-tech push that they consider vital to their country's future.

PM Modi To Open World's Largest Cellphone Factory Near Delhi Today
The current mobile phone manufacturing plant was introduced back in 2005, though it only started manufacturing phones in 2007. Samsung had previous year announced a fresh investment of ₹ 4,915 crore to expand the existing plant by another 35 acres.

There are already signs within the USA that companies are pausing decisions on investment and hiring and input costs flowing from the earlier increase in duties on steel, aluminium and washing machines are flowing through to higher end-prices.

Ford Motor Co said on Thursday that for now, it will not hike prices of imported Ford and higher-margin luxury Lincoln models in China.

The Trump administration contends that China has deployed predatory tactics in a push to overtake USA technological dominance.

President Trump said he was confronting China's unfair trade policies and earlier said: "From now on, we expect trading relationships to be fair and to be reciprocal".

He described the potential escalation to reporters aboard Air Force One: "Thirty-four, and then you have another 16 in two weeks and then, as you know, we have 200 billion in abeyance and then after the 200 billion we have 300 billion in abeyance. OK?" "So we have 50 plus 200 plus nearly 300", Trump told reporters aboard Air Force One on Thursday.

The official China Daily newspaper accused the Trump administration of "behaving like a gang of hoodlums".

And Trump said Thursday that higher tariffs on an additional $16 billion of Chinese goods are coming in the next two weeks, setting up what could be a tariff on $550 billion worth of goods - more than the $506 billion in Chinese imports past year.

Retaliatory tariffs from China could lead to a 59 percent decrease in OH farmers' net income within six years, a group representing Ohio's soybean industry said.

"This is not economic Armageddon. We will not have to hunt our food with pointy sticks", Rob Carnell, chief Asia economist at ING, said in a note.

"But it is applying the brakes to a global economy that has less durable momentum than appears to be the case".

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