Trump fires first salvo in trade war versus China

06 July, 2018, 03:56 | Author: Orlando Hughes
  • Donald Trump

His company, which sells sauvignon blancs and zinfandels to distributors in China has lost a half-million dollars in orders since China slapped tariffs in April on $3 billion worth of USA fruits, nuts and wine.

President TrumpDonald John TrumpChelsea Handler issues July 4 apology to world: "We're sorry about our president" USA pork producers prepare for steep tariffs: "I don't want to be the patriot who dies at the end of the war" ACLU membership grew from 400,000 to 1.84 million after Trump was elected: report MORE's trade war with China officially gets underway Friday with tariffs on $34 billion of Chinese imports, a move that Beijing has promised to reciprocate in the latest escalation between the world's two largest economies. "Changes in trade policy could cause us to have to question the outlook", he said during a panel talk in Portugal. "It's pretty significant", said Chen, managing director of Alexander Wine Co, which has been doing business in China for nearly a decade.

The industry source said China had been unable to address the Trump administration's concerns about Chinese trade policies in at least five key areas, including forced technology transfers, Chinese industrial overcapacity, government subsidies, SOE reform, and Beijing's restrictions in the cloud computing industry.

"Everyone is holding off to see what happens with this tax, whether it's repealed, or if there's a better solution".

The Chamber of Commerce this week released a report measuring how tariffs are likely to affect each state's export industries, with the overall message being that tariffs will hurt more than they will help.

The tariffs come at a time, however, of slowing growth and rising debt in China after more than three decades of almost uninterrupted expansion.

Local trade consultant Stephen Jacobi said he was hopeful that in the short term the dispute wouldn't a direct impact in New Zealand exports which (other than some steel products) were not in the firing line.

But as the Independence Day fireworks cool in Washington, the eve of the trade war has arrived in China's capital, where government leaders keep reminding people: We did not start this, but we will fight back.

In the months since, the tit for tat has escalated, with the US threatening successive rounds of tariffs on goods valued at hundreds of billions of dollars.

Gao said China's foreign trade was expected to continue on a stable path in the second half of the year, though investors fear a full-blown Sino-American trade war would deal a blow to Chinese exports and its economy.

Shipping containers sit on a Hong Kong-based container ship at the Port of Oakland in California last month.

6 women, 4 men blindfolded, hung from ceiling in India
Another police officer said that suicide is being suspected but possible angles of homicide are also being investigated. The local residents of the area reported the matter to police and investigation is underway.

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

Richard Morgan, chief executive of business advisory Equus Global Associates and a distributor of California dairy and Georgia pecans in China, told Reuters he was absorbing the impact of the April tariffs, reducing his profit margin to preserve market share and keep customers.

How did we get here?

"The sad part for us is while this political dance is playing out, our business may be taking a hit".

Mabuchi makes these motors in China and then sells them to automakers and medical-device companies in the USA and elsewhere. "They also will drive up the cost of manufacturing in the US and risk numerous 1.3 million good-paying manufacturing jobs our industry supports".

Chinese retailers told Reuters they probably would raise prices or spurn USA imports for domestic substitutes, which could eventually hurt their businesses.

Mr Feng said: "If the United States implements tariffs, they will actually be adding tariffs on companies from all countries, including Chinese and United States companies". "If customers feel that the prices are very high after the adjustments, then sales will go down".

Multiple Chinese state agencies stated China's stance on the US-China trade war, as the US Tariffs on $34 billion Chinese products will kick in within 24 hours.

"We will continue to assess the potential impact of the USA -initiated trade war on companies and will help companies mitigate possible shocks".

"While each measure on its own has small macroeconomic effects, the combination of the measures, the supply chain disruptions and the increased business uncertainty could spell trouble for the U.S. economy", Daco said.

Economists are generally wary of tariffs, since they drive up costs for businesses and consumers.

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