New Tariffs on Chinese Products Go into Effect

May 12, 2019, 00:32
New Tariffs on Chinese Products Go into Effect

Trump tweeted Friday that the talks, which he called "candid and constructive", would continue. Lighthizer announced Friday evening that he was preparing to impose tariffs on the $300 billion in Chinese imports that haven't already been targeted. The prior tariff level amounted to a tax of about $20 billion per year on USA importers.

"Thousands of USA companies are affected, and some had millions of dollars on the line", Brian Keare, the field chief information officer at Incorta, who advises companies like Broadcom, Starbucks, and Apple, told Business Insider.

Furthermore, both China and the United States should bear in mind the persistency, complexity and toughness of their economic and trade disputes, and render more patience and perseverance.

Trump justified the higher tariffs with a string of bogus economic logic, proclaiming on Twitter that the tariffs will make the USA economy stronger and bring more wealth to the United States.

Shanghai University economics professor Ding Jianping told VOA the tariffs would also adversely impact the USA financial markets, which have climbed to record highs. On Sunday Trump said he might also expand penalties to all Chinese goods shipped to the United States.

"China will also have to make good on its own words, otherwise, it will be at a huge disadvantage to the USA team at the negotiations", said He Weiwen, a former senior Chinese trade official, told the Global Times on Friday, referring to China's earlier vow to retaliate if the U.S. went ahead with the tariff threat.

More news: North Korea fires another projectile, South Korea says

"Probably the main thing is customer relations - trying not to upset them too much when we have to increase our prices", White said.

Atlanta Fed President Raphael Bostic told reporters on Friday that the central bank could reduce rates if the higher tariffs prompt a severe cutback in consumer spending. Trump appears to be suggesting that a tariff increase would generate revenues that could then be spent on farm products and infrastructure, something that might in theory require support from Congress.

Some economists, however, predict such tariffs would cut in half the US economic growth seen in the first quarter of this year.

A 25 percent hike "needs to be passed on to the consumer", Parker said.

Despite the public acrimony, local Chinese officials who want to attract American investment have tried to reassure companies there is "minimal retaliation", he said.

The higher USA import taxes don't apply to Chinese goods shipped before Friday. But the authorities in Beijing have not released any details, leading analysts to think they are biding their time in the hope an agreement can be reached before the tariffs kick in. "This is the first point", Liu said. He appealed to Washington to avoid more tariff hikes, saying they are "not a solution" and would harm the world.

More news: Stephen A. Smith: Klay Thompson Isn't Happy, Tired Of Getting "The Crumbs"

Yang Delong, chief economist at First Seafront Fund Management in Shanghai, told AFP that the "sudden hardening" of Trump's tone is likely linked to the 2020 USA presidential election.

"Earlier today, at the direction of the President, the United States increased the level of tariffs from 10 per cent to 25 per cent on approximately Dollars 200 billion worth of Chinese imports", Lighthizer said. Farmers are frustrated by the trade war.

Mr Liu also said the two sides disagreed over the amount of goods China would pledge to purchase from the USA to help reduce the American trade deficit. They wouldn't identify the specific issues involved.

Liu pointed to three major areas of disagreement: whether to cancel all punitive tariffs when an agreement is reached, the exact size of Chinese purchases of United States goods, and a "balanced" agreement text.

"If we get to a completed agreement it will have real enforcement provisions", he said at the time.

More news: Ray Lucas erupts in hysterics after New York Giants pick Daniel Jones