Published: Wed, July 11, 2018
Business | By Tara Barton

US, China tariffs kick in

US, China tariffs kick in

These consumer impacts are not lost on the Trump Administration. Beijing, it charges, is orchestrating a brass-knuckles campaign to supplant USA technological dominance and over the next few decades make Chinese companies global leaders in such fields as robotics and electric vehicles.

On Thursday, Trump told reporters who flew with him to Montana for a campaign rally that higher tariffs on an additional $16 billion in Chinese goods are set to take effect in two weeks.

Trump started the war but it is unclear how he envisages it ending without China volunteering to both significantly damage its own economy and its leadership suffering humiliation in the process. The head of the European Commission, Jean-Claude Juncker, said Mr Trump's fixation on a USA trade deficit in goods ignores a services surplus. "We've awakened. ... This is a fundamental change".

Critics argue, though, that while Trump has picked the right fight, he has chosen the wrong weapon. The motorcycle company announced last month it would move production out of the U.S.to get around the EU's retaliatory tariffs.

China's commerce ministry called the U.S. actions "a violation of world trade rules" and said that it had "initiated the largest-scale trade war in economic history".

The influential US Chamber of Commerce, with headquarters just steps from the White House, urged Trump this week to reconsider his actions, saying the counter-tariffs now affected $75 billion in American exports and endangered US jobs.

The U.S. also has irked some of its closest allies by hiking import duties on steel, aluminum and autos from Europe, Japan, Canada and Mexico. "So we have 50 plus 200 plus nearly 300".

"If a country wants to raise tariffs, China will respond to defend itself", he said.

India's Oil Imports from Iran Fall by 15.9% in June
Iran "should know that America is committed to keeping sea lines open, keeping the transit of oil available for the entire world", Mr.

Beijing earlier released a target list of $34 billion worth of imported U.S. goods, including automobiles and agricultural products that also faced 25 percent tariffs.

While the newly formed government is not invoking a vote in Italy to leave the European Union, it is comprised of more Euro skeptics. Many of today's advanced technologies - the ability to collect and analyze vast amounts of data, for instance - have military uses.

If enacted, the import duty would make USA oil less competitive than other crudes, likely causing a decline in Chinese purchases and forcing US oil firms to find other buyers. Concerns were raised that the deal would give China access to the financial records of millions of Americans, including members of the military.

The first round of tariffs applies to over 800 Chinese products.

On Thursday, Trump said that he is willing to slap tariffs on up to $550 billion, which actually exceeds the current value of Chinese imports to the United States by $46 billion. "A deficit is actually a good thing for the USA because we're the world's biggest economic power, and other countries are willing to hold our debt", said Hsu. The plan calls for creating powerful Chinese players in such areas as information technology, robotics, aerospace equipment, electric vehicles and biopharmaceuticals.

"We see a strong resistance of 6.70 for now and the 6.90 level seems China's bottom line for the yuan exchange rate. -China deficit, this is a point that I think the administration misunderstands", she said. It is now the world's largest exporter of high-tech products. But the partnership imploded.

Mr Baig adds that "considering China grows at 6-7% and the U.S. at 2-3%, we believe the damage would be greater to the United States than on China".

It discussed economic threats and external risks, according to a government statement which added the country has "favourable conditions to win big risk control battles and cope with external risks".

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