Wednesday, 19 September, 2018

China presses Europe for anti-U.S. alliance on trade

Nellie Chapman | 03 July, 2018, 18:53

The U.S. Chamber of Commerce, usually a staunch ally of the Republican party, is launching a campaign against President Donald Trump's recent trade tariff policies, Reuters reported Monday.

Steep US tariffs on more than US$30 billion in Chinese imports are due to take effect Friday as retribution for Beijing's alleged theft of US intellectual property.

Trump's views on tariffs have been a sore subject, even among fellow Republicans who have criticized Trump's imposition of steep tariffs against USA allies.

Exports threatened by new tariffs include about $842.5 million worth to China, $292 million to Mexico, $88 million to the European Union and $1.1 million to Canada, the study says.

In a submission to the USA authorities, the European Commission warned: "Economic analysis confirms that an increased tariff on these products (cars and vehicle parts) will be harmful first and foremost for the United States economy". He dismissed suggestions that his attacks on the European Union were counterproductive.

Although Moog builds all of its synths on United States soil in its North Carolina factory, it relies heavily on circuit boards from China.

Canada and the US are among the world's largest trading partners, with an estimated $673.9 billion in goods and services exchanged in 2017, with the USA scoring a small surplus ($8.4 billion), according to USA government data. China is expected to strike back with tariffs on a like amount of USA exports.

Heinrich Hiesinger, chief executive of German steel manufacturer Thyssenkrupp, which recently announced its proposed merger with Tata Steel, told Sky News that the company "didn't like it, but could manage" a tailing off of USA exports and profits.

As for ZTE, the Chinese telecommunications company, lots of industry watchers, including Kleintop of The Charles Schwab Corporation (SCHW), think that if ZTE is once again allowed to purchase USA equipment, it could ratchet down the tensions between the two countries.

With some of America's tightest trading partners imposing retaliatory measures, Trump's approach to tariffs has unsettled financial markets, straining relations between the White House and the Chamber. Australia's S&P/ASX 200 bucked the regional trend, adding 0.4 percent to 6,205.10, ahead of an interest rate decision by the Reserve Bank of Australia later Tuesday. "So he holds a press conference - the president is barely out of there on the plane to North Korea, and he starts insulting us, he starts talking about the U.S.is insulting Canada", Kudlow said on CBS' "Face the Nation" in June.

In a letter to USA authorities, the European Commission, which handles trade policy for the bloc's 28 members, painted a stark picture of what the U.S. economy would face if Trump followed through on his threat. Westpac forecasts they will fall by 4.0 per cent in May.