Trump's steel tariffs could tap out lone United States keg producer

Mar 26, 2018, 00:57
Trump's steel tariffs could tap out lone United States keg producer

Trump is planning to impose the tariffs for what he says is misappropriation of US intellectual property.

Trump imposed tariffs on about United States dollars 60 billion worth of Chinese imports to punish the country for its "unfair" seizure of American intellectual property, a move that could escalate the already tense trade relations between the world's two biggest economies.

Tiberghien said the Chinese will make the fight long and painful.

"China also appears to be breaking WTO rules by imposing conditions that don't allow US firms the ability to protect their intellectual property", it added.

Apparel and footwear, telecommunications equipment and household appliances are among the Chinese manufacturing sectors with the biggest exposure to the USA market, according to a Moody's research note released on Thursday.

China's Commerce Ministry said Beijing was considering a tariff increase of 25 per cent on pork and aluminum scrap, mirroring Trump's 25 per cent charge on steel.

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For the smaller companies in the S&P 600 index, it's just 19.5%. "The United States can not easily find ideal alternatives in a short time", he said.

Countries affected by the measures, like China, can under WTO rules retaliate with tariffs on US goods worth a sum equivalent to the trading loss they would suffer from the USA tariffs. Beijing told Washington that USA export restrictions on some high-tech products are to blame.

Qi Tonggang, chairman of Qirun, a high-end equipment manufacturer based in east China's Zhejiang Province, worries his company will bear the brunt of the potential tariffs.

Ever since his presidential campaign he has threatened to pull the USA out of the body.

"I fear the cooperation will fail".

Most traders are anxious that an escalating trade spat between Washington D.C. and Beijing will hurt USA businesses, especially those that do a lot of sales overseas. "We will work closely with our government to keep this important market open to the benefit of both American agriculture and Chinese consumers", Skor said. The U.S. Trade Representative recently noted that some 900,000 American jobs depend on U.S. However, the attempt to accelerate the process with a massive imposition of tariffs against China will only cause chaos and losses, they said.

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Lin estimated that at least a third of shoes sold in the United States would still come from China, because other manufacturers can not provide more. But a senior US official later said that Washington was "not interested in creating terms for a dialogue". Several economists estimated that the Trump administration's plan to slap tariffs on as much as $60 billion of Chinese products would trim China's economic growth rate-targeted at about 6.5% this year-by 0.1 percentage point if put into effect. "The livelihood of America's consumers, businesses, farmers, and ranchers are at risk if the administration proceeds with this plan". "So President Trump is blowing the whistle on what may be called Chinese economic aggression".

China pledged on Sunday to press ahead with market opening and reforms while reiterating that it will treat domestic and foreign firms equally and protect intellectual property rights.

"It is a typical unilateralism and trade protectionism".

The pledge on reform and equal treatment came from Vice Premier Han Zheng, at a time there are increasing prospects of a trade war with the United States. "We have confidence and capability in dealing with any challenges", he added.

A chorus of Chinese officials said China isn't afraid of a trade confrontation with the U.S. Even so, the Commerce Ministry urged the "pull back from the brink".

Chinese purchases of those goods a year ago totaled $3 billion, the ministry said.

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China's ambassador to the United States, Cui Tiankai, declined to rule out cutting purchases of U.S. Treasury debt in the dispute, telling Bloomberg Television on Friday: "We are looking at all options".