Saturday, 18 August, 2018

Trump's Prepares China Trade War, $200 Billion in Tariffs

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Nellie Chapman | 19 June, 2018, 08:46

President Trump urges yet another round of China tariffs, amid the escalating trade war with Beijing.

"If China increases its tariffs yet again, we will meet that action by pursuing additional tariffs on another $200 billion of goods".

Trump had announced a 25 per cent tariff on up to US$50 billion in Chinese imports.

Following Trump's announcement, China rolled out retaliatory tariffs on $US50 billion worth of United States goods and promised to stand firm against the US's actions.

Beijing responded by saying it would hit 659 U.S. goods worth $50bn with a similar tax.

President Trump said the new tariffs will go into effect unless China ends its malicious trade practices. He did not say when the target list of Chinese goods would be unveiled.

"All they can do is impose higher tariffs on a smaller subset of products", he said. He added that China is a "predatory economic government" that is "long overdue in being tackled", matters that include IP theft and Chinese steel and aluminum flooding the USA market. "Rather than altering those practices, it is now threatening United States companies, workers, and farmers who have done nothing wrong", he said.

China said it would retaliate immediately by suspending previous trade agreements and slapping duties on American exports, including crude oil.

While on the campaign trail, Trump has repeatedly criticized China's economic and trade practices.

The US wants China to stop practices that allegedly encourage transfer of intellectual property - design and product ideas - to Chinese companies, such as requirements that foreign firms share ownership with local partners to access the Chinese market.

Pompeo said China's theft of US intellectual property "is at an unprecedented level of larceny" and he had raised the issue in talks last week with China's President Xi Jingping. "It's an unprecedented level of larceny".

"Because of the government's widening fiscal deficit, ONGC and OIL could be asked to bear part of the Indian government's fuel subsidy for oil, if prices stay above $60 per barrel for the fiscal year ending March 2019", said Vikas Halan, Senior Vice President at Moody's said in a report.

American crude has proved competitive for China; the USA benchmark WTI averaged a $1.83 per barrel discount to oil from the North Sea Forties on a delivered basis into China in May, and a 74 cents per barrel discount to Abu Dhabi's Murban crude, according to S&P Global Platts calculations.

"China would then buy the additional Saudi and Russian output, using it to replace cargoes from the United States, and even from Iran, assuming the renewed United States sanctions against Iran force Beijing to curtail imports".

"I reminded him that's not fair competition", Pompeo said.

These include major American exports to China such as soybeans, which brought in $14 billion in sales past year, and are grown in states that supported Trump during the 2016 presidential election.

China warned it will take "qualitative" and "quantitative" measures if the US government publishes an additional list of tariffs on its products.