Escalating trade spat worries US, China companies, East Asia News & Top Stories

Adjust Comment Print

China plans to impose 25 percent tariffs on roughly $50 billion of USA goods in retaliation for the Trump administration's announcement Friday that it would impose duties of the same amount on $50 billion of Chinese goods, according to a report from the official news agency Xinhua. The Chinese government countered with a list of goods slated for tariffs, including cars and farm products, that could cause political damage for Republicans.

The WP report came after Trump imposed tariffs on Chinese products worth $50 billion to penalise China for what he feels an unethical business practice.

The new list is about six times longer than the original list, but numerous items on it aren't actually traded much between the US and China.

"There will be a surge in exports from China and from the the date approaches", said John Manners-Bell, CEO of United Kingdom research firm Transport Intelligence. It was still on track for a 2.9 percent increase for the year to date.

Early this year in April US President Donald Trump has tweeted, "When a vehicle is sent to the United States from China, there is a Tariff to be paid of 2 1/2 per cent".

In the best-case scenario for the U.S., China would back down on technology issues and open its market to more American goods and services.

U.S. President Donald Trump's announcement of tariffs on Chinese goods escalates tensions between the world's two largest economies. The new list includes more agricultural produce, including dairy, alfalfa and seafood, than an initial group published in April.

In 2016, Nebraska exported $1.07 billion of soybeans and soybean products to China-51 percent of total soybean production.

Italy’s FURY: Populist leaders still waiting for an apology from France’s Macron
He has accused charities of working with human traffickers but said Italy would not stop rescuing migrant boats itself. The ship was eventually rerouted to Spain , after Spanish authorities said it would be allowed to dock in Valencia.

They are part of a $50 billion list of Chinese exports targeted for a 25 percent tariff hike in response to complaints Beijing steals or pressures foreign companies to hand over technology.

The 28 members of the European Union agreed Thursday that retaliatory tariffs would go into effect in the coming days. US companies that rely on the targeted imports - and can't find substitutes - can apply for exemptions from the tariffs.

Currently, China and the United States have the world's biggest trading relationship.

In a joint news conference Thursday evening in Beijing, Chinese Foreign Minister Wang Yi said China and the United States have two options before them: one is "cooperation" and a "win-win" scenario and the other is "lose-lose".

The USTR official said the tariffs were aimed at changing China's behavior on its technology transfer policies and massive subsidies to develop high-tech industries.

The new U.S. import duties are aimed at forcing Beijing to stop what the White House claims is the systematic theft of United States intellectual property and will apply to a wide range of products.

The goods covered in the new US tariffs on China include "goods related to China's Made in China 2025 strategic plan to dominate the emerging high-technology industries that will drive future economic growth for China, but hurt economic growth for the United States and many other countries". It also added, "China is a powerful guardian and has enough ammunition to defend existing trade rules and fairness". Another round of trade talks took place in Beijing earlier this month but failed to yield any breakthroughs. From July 6, additional tariffs will be levied on some 34 billion U.S. dollars worth of Chinese products.