Published: Пн, Июля 09, 2018
Business | By Kate Woods

Trump’s trade war: what is it and which products are affected?

Trump’s trade war: what is it and which products are affected?

China may start limiting the number of big-spending tourists and its 350,000 students that head to the U.S. each year, which would have a big impact on the American market.

Just hours after the United States introduced 25 percent trade tariffs on $34 billion worth of Chinese goods, Beijing has retaliated with mirror measures against American imports.

On Friday, China's foreign ministry in Beijing immediately retaliated by imposing additional tariffs for US products worth about $34 billion.

The 25% duties, which went into effect at 12:01 am EST, prompted quick retaliation by Beijing, which said it immediately put its own similarly sized tariffs on USA goods, including fruits and vegetables.

China is expected to match the move with a 25 percent levy on U.S. goods to the same value on the same day.

Gerard Bottino/CrowdSpark/NewscomBegun, the trade war has.

Certain products are even more imbalanced, for instance the United States charges a 2.5 percent tariff on Chinese cars, while China now maintains a 25 percent tariff on cars from the United States.

Both the U.S. and China imposed punitive tariffs on each other's exports today in what Beijing calls "the biggest trade war in economic history". "Our view is that trade war is never a solution", Chinese Premier Li Keqiang told reporters during a trip to Bulgaria.

Financial markets seemed to take the latest developments in stride.

Читайте также: Death Sentence to Nirbhaya rapists confirmed by Supreme Court

"There should be no doubting Beijing's resolve", the China Daily said. Bloomberg Economics' base case remains more trade skirmish than trade war, but the risks are increasing.

A model by Pictet Asset Management reckons a 10 per cent tariff on USA trade fully passed on to consumers could tip the global economy into stagflation and knock 2.5 per cent off corporate earnings globally.

The office of the US Trade Representative announced a product exclusion process for Chinese products subject to Section 301 tariffs, seeking to soften the blow on US companies a little. Given that Beijing has kept its word to retaliate, the ball is in Trump's court again now. Asian equities wobbled but also managed to end up. Beijing also accused Washington of breaching trade rules of the World Trade Organisation (WTO). America is the world's largest exporter of soy beans, and China is the world's largest consumer of them. The products, all sold on Chinese e-commerce platforms, ranged from pet food to mixed nuts and whiskey. The motorcycle maker said this month it may move production out of the United States to avoid European Union tariffs on its bikes.

For years, the Chinese government turned a blind eye to counterfeited USA luxury goods, bootlegged Hollywood films, fake Apple stores, trade secrets pilfered from cutting-edge US tech companies.

"Whether you look at fundamental factors, or market psychology, there's nothing bright - a Sino-U.S. trade war will have a seriously negative impact on China's economy", Chien said.

"You have another 16 (billion U.S. dollars) in two weeks, and then, as you know, we have US$200 billion in abeyance, and then after the US$200 billion, we have US$300 billion in abeyance. What we will likely see happen in the short-term is apples that were destined for export markets will instead overhang the USA market", she said.

The escalation from the threat of a trade war to reality is something farmers were dreading.

And Trump said Thursday that higher tariffs on an additional $16 billion of Chinese goods are coming in the next two weeks, setting up what could be a tariff on $550 billion worth of goods - more than the $506 billion in Chinese imports previous year.

При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
«» 2007 - 2018 Copyright.
Автоматизированное извлечение информации сайта запрещено.

Код для вставки в блог

Like this: