The implications of US-China trade war

The implications of US-China trade war

The implications of US-China trade war

The Trump administration will impose tariffs on $200 billion more in Chinese goods starting next week, escalating a trade war between the world's two biggest economies and potentially raising prices on goods ranging from handbags to bicycle tires.

The Wall Street Journal reported on Saturday that the USA plans to impose 10 percent tariffs on $200 billion of Chinese goods in the coming days and they will take effect within weeks.

Trump also warned in a statement on Monday that if China takes retaliatory action against USA farmers or industries, "we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports".

In a pair of early morning tweets, Trump hailed his combative trade policy as a boon to American economic health and said the USA steel industry, which the White House has championed in new protectionist measures, was now "the talk of the world". "Once again, I urge China's leaders to take swift action to end their country's unfair trade practices".

"An escalating trade conflict serves no one's interests", Geng said.

Multiple media reports in recent days cite officials saying Trump had made a decision to press ahead with tariffs on $200bn in goods as soon as Monday.

If China then slaps tariffs on another $60 billion in U.S. goods, this will bring total United States exports subject to Beijing's retaliation to $110 billion, at 2017 sales levels.

US President Donald Trump has enforced higher import taxes will apply to more than 5000 Chinese goods.

In a pair of early morning tweets on Monday, Trump hailed his combative trade policy as a boon to American economic health and said the U.S. steel industry, which the White House has championed in new protectionist measures, was now "the talk of the world".

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"Right now our top negotiator is on a plane to Geneva for a meeting on WTO reforms and the US-China tariff situation will be discussed there". "I think it's going to work out very well with China", he said. Then last month, the escalating trade war moved up a gear when the U.S. brought in a 25 percent tax on a second wave of goods worth $16b.

It is also the biggest set of tariffs to date, and unlike the earlier rounds this latest list targets consumer goods, such as luggage and furniture.

In proceeding with additional tariffs, Trump ignored pleas from hundreds of U.S. companies who opposed the new levies at public hearings last month.

"Our concern with these tariffs is that the U.S. will be hardest hit, and that will result in lower United States growth and competitiveness and higher prices for USA consumers", Apple said in a letter commenting on the proposal.

This will cut demand for these products (hurting the Chinese economy), and also probably drive up prices in U.S. shops (hurting Americans). The lack of progress and collapse of that deal have made future negotiations more hard, as it's unclear who speaks for the United States administration and there's a lack of confidence that any deal will be honored. The price of washing machines in the U.S.

Beijing has rejected pressure from the United States to roll back plans for state-led development of Chinese global champions in robotics, artificial intelligence and other fields. "Setting aside whether this would be a successful negotiating tactic by the president, which only time will tell, the rapid escalation of tariffs and increasing uncertainty will cause significant short-term harm to both businesses and consumers".

His comments are likely to further rattle USA businesses, which have pleaded with the administration to abandon the tariffs and warned they will raise prices, cost jobs and hurt the US economy.

Harley-Davidson will have to bump up the Chinese price of its iconic motorbikes at least 20 percent, a store representative in Beijing said.

Apple Inc (AAPL.O) has said the moves could hit a "wide range" of its products.

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