China hits back after USA imposes tariffs worth $34bn

Jul 08, 2018, 00:25
China hits back after USA imposes tariffs worth $34bn

While the United States tariffs aim to cut down the trade deficit, there are worries about how China's retaliatory tariffs will hit the United States economy.

President Donald Trump said more than $500 billion in Chinese products could ultimately be penalized.

Addressing the lower house of parliament in Berlin, Merkel said the global response to the market meltdown a decade ago showed that cooperation works better than one-sided measures. "We are the casualty and predicted it from day one".

The tariffs would mark a significant escalation in the trade dispute between the world's two biggest economies.

Substantial they may be, but the average US consumer will likely not see these impacts directly for a little while.

Friday's tariffs could just be the opening skirmishes in the war, as Trump has vowed to hit as much as $450 billion in Chinese goods, the vast majority of imports.

Businesses will have to pay 25 percent additional tax on $US34b of certain Chinese products they import - including aircraft tyres and commercial dishwashers.

More news: Xbox, Switch use 'Fortnite' momentum against PS4 in new 'Minecraft' trailer

Beijing earlier released a target list of $34 billion worth of imported USA goods, including automobiles and agricultural products that also faced 25 percent tariffs.

He went on, "If China increases its tariffs yet again, we will meet that action by pursuing additional tariffs on another $200 billion of goods".

How did we get here?

After months of speculation as to whether or not it would occur, the trade war between the United States and China is now underway in earnest. These tactics include cyber-theft as well as requiring American companies to hand over technology in exchange for access to China's market. -China tit-for-tat tariff fight is likely to shrink trade volume worldwide, which would weigh on the global economy that has been on a recovery track.

In addition to the $US16b under consultation, Mr Trump has flagged there could be more tariffs in store.

The president believes this is the best way to close the trade deficit between the USA and China.

Stock markets have been jittery ahead of the announcement and are estimated to have lost market value due to trade tensions.

More news: Game of Thrones' Kit Harington and Rose Leslie are married

As the tariffs approached, the United States central bank warned the impending trade battle was beginning to darken the otherwise blue skies of the robust American economy, now in its 10th year of recovery.

Tariffs imposed so far by all sides affect about $60 billion of goods, or 0.3 per cent of world trade, according to Slater.

Analysts are also concerned about the impact on others in the supply chain and about an escalation of tensions between the U.S. and China in general.

Hours before Washington's deadline for the tariffs to take effect, President Trump upped the ante on its largest trading partner, warning that the United States may ultimately target more than $500 billion worth of Chinese goods - that's roughly the total of USA imports from China previous year.

Shaun Rein, managing director at the China Market Research Group in Shanghai, said the Chinese government's next play could be to stoke anti-American sentiments among consumers - similar to the boycotts it ordered past year on South Korea's Lotte Group, which caused dozens of the company's convenience stores to shutter.

"China will not bow in the face of threats and blackmail, nor will it be shaken in its resolve to defend global free trade", said ministry spokesman Gao Feng at a news conference. "China economic relationship will negatively impact their operations in China", he said.

More news: WC FIFA 2018: Sweden wins against South Korea by VAR penalty

Loading...
loading...
loading...
YOU MIGHT ALSO LIKE
  • World powers try keep Iran nuclear deal alive

    World powers try keep Iran nuclear deal alive

    Under contingencies, the enemies can understand the meaning of Hormuz Strait "either for all, or for none", Jafari stressed.
    Merkel gives in: German chancellor agrees to tighten immigration policies

    Merkel gives in: German chancellor agrees to tighten immigration policies

    He said he had spoken to Austrian Chancellor Sebastian Kurz by phone. But Seehofer said that agreement wasn't tough enough.
    Summer solstice 2018: The longest day in pictures

    Summer solstice 2018: The longest day in pictures

    The summer solstice in the southern hemisphere will occur on December 21, which is the winter solstice in the northern hemisphere. The summer solstice festival dates back thousands of years and is one of the most important dates in the pagan calendar.
  • Philippines v Australia basketball

    Philippines v Australia basketball

    The game was called off after the remaining Philippines players fouled themselves out, with Australia declared the victor 89-53. Mathew Wright (L) of the Philipines and Daniel Kickert of Australia fight during their FIBA World Cup Asian qualifier game.
    Somalia: U.S. Court Upholds Travel Ban for Somalia

    Somalia: U.S. Court Upholds Travel Ban for Somalia

    Trump's order bans travel to the US from the nations of Iran, Libya, Somalia, Syria, and Yemen, North Korea and Venezuela. INSKEEP: Total and complete shutdown of Muslims entering the United States is the way the president phrased it then.

    Australia, Denmark draw 1-1

    If the referee gives a crappy decision against you, you used to always say "you'll get that one back". Australia could face being eliminated if they lose to Denmark and France win against Peru later on.
  • Netflix tests a new

    Netflix tests a new "ultra" tier across Europe, but there’s a catch

    For less than $14 a month, you can enjoy all the movies and TV shows you like, in Ultra HD, on up to four devices simultaneously. And those on the Standard tier found their access limited to just the one device at a time, down from two.
    Melania Trump visits border detention centre: 'Wants to learn and educate herself'

    Melania Trump visits border detention centre: 'Wants to learn and educate herself'

    But the states say his order is riddled with caveats and fails to reunite parents and children who have already been torn apart. There were moments from Trump's visits that seemed to indicate she was there not to change the status quo, but to applaud it.
    Neymar limps out of Brazil training session

    Neymar limps out of Brazil training session

    Neymar has sparked concern in Brazil after he was seen limping out of training ahead the side's World Cup clash with Costa Rica . But they have not beaten Germany in three attempts at various World Cups.
  • Trump will meet one-on-one with Putin, ambassador confirms

    Trump will meet one-on-one with Putin, ambassador confirms

    In the afternoon, he will have a one-on-one meeting with Putin, followed by an expanded bilateral meeting and a working lunch before he departs for Washington .
    Why England Might Be Better Off Losing Their Final Game

    Why England Might Be Better Off Losing Their Final Game

    They face the unsafe Colombia and will meet the victor of Sweden against Switzerland in the last eight if they come through. Lukaku has been in superb form so far in Russian Federation , scoring a brace in each of the wins over Panama and Tunisia.
    England must be more clinical against Panama

    England must be more clinical against Panama

    Southgate has rejected reports that notes from a training session revealed his starting XI for Sunday's clash with Panama. Midfielder Dele Alli hurt his thigh against Tunisia and appears set to be replaced by Ruben Loftus-Cheek against Panama.
popular