Thursday, 20 September, 2018

United States unveils $200 billion list of China imports for tariffs

United States unveils $200 billion list of China imports for tariffs United States unveils $200 billion list of China imports for tariffs
Melinda Barton | 13 July, 2018, 13:57

"This latest story will serve as a reality check for the market, reminding investors to reconsider how aggressive they want to be", Michael O'Rourke, chief market strategist at JonesTrading, told Bloomberg News.

The additional 6,031 product lines would be hit with a 10 percent tariff.

"We have been very clear and detailed regarding the specific changes China should undertake".

President Donald Trump has said he may ultimately impose tariffs on more than $500 billion worth of Chinese goods - roughly the total amount of USA imports from China previous year.

The spiraling conflict over USA complaints about Chinese technology policy has prompted warnings it might chill global economic growth.

China vowed to fightback against the Trump administration's plans to impose tariffs on an additional US$200 billion in Chinese goods, escalating a trade war between the world's two biggest economies.

In response to what the US Government considers unfair commercial practices, the US started last Friday to implement tariffs of 25 per cent on Chinese imports with a value amounting to Dollars 34,000 million.

China's Commerce Ministry slammed the latest USA threat as a "totally unacceptable" escalation of their dispute and promised to protect its "core interests".

China is shocked by what the United States did... the Chinese government will, as always, be forced to take necessary countermeasures.

The USTR said it was responding to Beijing's decision to retaliate instead of changing its policies.

US President Trump subsequently threatened to apply a 10% tariff on another $US200 billion worth of Chinese products. The threat to the USA economy is less about a question of "if" and more about "when" and 'how bad.' Tariffs on such a broad scope of products make it inconceivable that American consumers will dodge this tax increase as prices of everyday products will be forced to rise.

The new list includes vacuum cleaners, furniture, auto and bicycle parts, French doors and plywood. In fact, China is America's second-largest crude oil customer after Canada and is also one of the biggest importers of US propane and liquefied natural gas (LNG).

China's Cybersecurity Law, which took effect a year ago, had disrupted businesses, the survey said, while VPN policies made work harder for 56 percent of companies.

Financial markets could take a harder fall if China retaliates to the latest volley of USA tariffs, as Beijing has vowed, according to research firm Capital Economics. So from the Chinese perspective, first of all, there's - 34 billion US dollars of Chinese imports are being tariffed, and now there's going to be another 16 billion that's coming up.

Both the yen and the dollar are favored as safe-haven investments, but the strength of the greenback suggests investor faith in the USA economy rather than a bid for safety. Regulators can deny or cancel licences or launch lengthy tax, environmental or anti-monopoly investigations.

A larger concern for the Trump administration could be the trade feud's impact on consumers.

The United States, meanwhile, has lodged 22 WTO complaints against China, accusing the Asian nation of a range of illegal trade practices, including propping up its manufacturing and agricultural sectors with subsidies and effectively stealing the trade secrets of foreign firms.

Members of Congress are increasingly questioning Trump's tactics.

"In part because they have only limited ammunition and in part because it's still early in the process on the USA side", Kuijs said.

"Tonight's announcement appears reckless and is not a targeted approach", Senate Finance Chairman Orrin Hatch, a Utah Republican, said in a statement.

Envoys from the two sides last met June 3 when Commerce Secretary Wilbur Ross visited Beijing for talks with Vice Premier Liu He.

Chinese leaders have tried without success to recruit support from Europe and other governments.

Some lawmakers, frustrated by having to stand by as Trump imposes measures they see as harmful and protectionist, have begun to explore ways to rein in the president's authority to unilaterally impose tariffs.

Coors Brewing is on the record saying they believe the trade war will impact the price of beer.

Hong Kong lost 1.3 per cent and Shanghai ended off 1.8 per cent, while Seoul shed 0.6 per cent and Singapore gave away 0.9 per cent. Sydney retreated 0.7 per cent, while Jakarta was also sharply lower.