China slaps additional tariffs on $50 billion worth of US goods

17 June, 2018, 04:45 | Author: Wade Massey
  • CT6 Cadillac during the Consumer Electronics Show Asia 2018 in Shanghai China on Friday

The Trump administration announced a 25 percent tariff on up to $50 billion worth of Chinese imports on Friday, instantly escalating a trade dispute between the world's two largest economies. A statement from the Chinese Ministry of Commerce said that the country would implement tariffs on a similar scale on USA goods.

The announcement caps months of sometimes fraught shuttle diplomacy between Washington and Beijing, in which Chinese offers to purchase more US goods failed to assuage Trump's grievances over the soaring US-China trade imbalance and Beijing's industrial development policies. Among the affected $16 billion in US goods include crude oil, natural gas, coal and some refined oil products.

"The whole world will be picking up the bill for the mistaken acts of USA unilateralism". Caterpillar Inc, another big exporter to China, ended 2 percent lower. But a recent study published by the Agricultural and Applied Economics Association predicted a $2 billion to $3 billion annual hit to US economic welfare if the Chinese retaliate to new USA tariffs with a 25 percent tariff on USA soybeans.

As it had before, the Trump administration said the tariffs are a response to what it sees as unfair trade policies and intellectual property theft by the Chinese government on behalf of its own companies.

The statement said the USA step on Friday violated "the relevant rules of the World Trade Organization" and went against a consensus reached in bilateral economic and trade agreements.

President Donald Trump has vowed to clamp down on what he calls China's unfair trade practices, but denied there was a trade war after announcing the tariffs. The new list includes more agricultural produce, including dairy, alfalfa and seafood, than a initial group published in April.

The U.S. Trade Representative's final list includes 1,102 product lines, down from about 1,300 initially, mainly focused on China's Made In 2025 plan to become dominant in high-technology industries such as robotics, aerospace, industrial machinery and automobiles.

Tariffs on these products will go into effect after a public comment period. The Washington Post and The Wall Street Journal were among the publications reporting overnight that Trump, fresh from his return from the Singapore Summit with North Korean leader Kim Jong Un, has chose to enact significant tariffs on Chinese goods.

The current dollar amount of USA tariffs imposed on Chinese goods are tiny, however, when compared to the size of the $18 trillion US economy.

Nadal has no obsession to hunt down Federer tally
The Austrian is never one to hide his frustration, but then the sheer relentlessness of Nadal on clay would wear anyone down. But there was still something extraordinary, and new, about how Nadal added to his legend over the past fortnight in Paris .


Morocco 0-1 Iran: Late Own Goal Hurts Atlas Lion
U.S. sanctions mean that, as a United States company, Nike can not supply shoes to players in the Iranian National team at this time .


North Korea and South Korea began to rebuild military contacts
The calls follow an historic weekend summit in Singapore between North Korean leader Kim Jong Un and President Donald J. However, the parties agreed to continue to work on finding solutions on these issues, said in a joint press release.


Workers transport imported soybeans at a port in Nantong in Jiangsu province of China. As a remedy, his trade team fixed their sights on such Chinese exports as video monitors with cathode ray tubes, dishwashers, bulldozers, motorcycles, locomotives, as well as "black and white or other monochrome video projectors".

On Friday, the USA imposed additional tariffs of 25 per cent on import of Chinese goods worth $ 50 billion.

American farmers export about $14 billion worth of soybeans to China each year.

Beijing and Washington have held three rounds of high-level talks since early May that have yet to yield a compromise.

The Chinese announcement is the latest volley in a trade dispute between China and the USA that has been escalating for months. The $50 billion in tariffs will likely mean just a tenth of a percentage point hit "at most" on annual USA economic growth and a similar jump in overall consumer prices, according to data from Barclays, the British bank.

China's government urged the United States to back down from its current course of action.

Ron Moore, who farms 1,800 acres of corn and soybeans in Roseville, Illinois, said soybean prices have already started dropping ahead of what looks like a trade war between the two economic powerhouses. He added: "Our hope is that it doesn't lead to a rash reaction from China".

Although shares of some tariff-sensitive companies fell on Wall Street, the stock market overall fell only modestly.

Recommended:



Popular

Jay-Z and Beyonce release surprise album
It was directed by Ricky Saiz, who previously worked with Bey on the 2013 visual for " Yonce ". He was the top nominee at February's awards show, but left empty- handed.

Eight injured in Moscow after taxi mounts pavement
Witnesses say a number of the injured were wearing the Mexican football team's colors. They also confirmed the driver was not drunk, and that it was an accident.

Apple office places standing desk for employees to aid healthy lifestyle
Reminding people to stand and move throughout the day has been a passion of Cook's and the company's for quite some time. An unhealthy amount of time spent sitting at our desks, working away on computers, and barely getting any exercise.

Steve Bannon Reportedly Floats 'Deplorables Coin' Cryptocurrency
The interesting news is that Bannon is considering launching his very own cryptocurrency and entering the crypto space in style. Bannon's interest in the creation of new cryptocurrency puts him in the scam-filled part of the cryptocurrency business.

Eid al-Fitr Begins Friday in Lebanon
Next weekend, on June 23, London Mayor Sadiq Kahn will host the annual Eid in the Square celebration in Trafalgar Square. Muslims in Ghana and across the globe climax the end of Ramadan with the celebration of Eid-Ul-Fitr today.

Technology saved France against Australia
Last night Cristiano Ronaldo rose to the occasion and gave all of us plenty of taking points in Portugal's enthralling 3-3 draw with Spain.

LGBT Campaigner Detained In Moscow Got Into Russia On Football Fan Visa
The activist is accused of violation of law 54 and the presidential decree banning rallies on red square and banning any protests during the world Cup.

Mickelson throws 'putting tantrum' at US Open
He had four consecutive bogeys before parring the 12th, despite the serenading of "Happy Birthday" from the crowds at every hole. It was about to start rolling down another ridge when Mickelson ran after it and hit it back toward the hole.

Idaho Child Infected With Plague, Officials Uncertain Where Patient Contracted Bacterial Disease
In the 14th century, almost two thirds of Europe's population was wiped out by the disease during the Black Death. A child in Idaho came down with the plague recently, according to a statement by Idaho's Central District Health.

Astronomers see how black hole rips apart star
The observation will help astronomers understand these events, as well as the environments in which galaxies developed. The galaxy in question is actually two galaxies colliding, so the region known as Arp 299 is rich with supernovae.