USA tariffs on Chinese imports take effect

USA tariffs on Chinese imports take effect

U.S. tariffs on $34bn (£25.7bn) of Chinese goods have come into effect, signalling the start of a trade war between the world's two largest economies.

Last year, Chinese consumers suddenly turned against South Korean retailer Lotte, which was forced to shut three-quarters of its shops in China after providing Seoul with land to deploy an American anti-missile shield that Beijing opposes. President Xi Jinping has balked at USA demands to stop subsidizing Chinese firms under his plan to make the nation a leader in key technologies by 2025.

Hours before Washington's deadline for the tariffs to take effect, U.S. President Donald Trump upped the ante, warning that the United States may ultimately target over $500 billion worth of Chinese goods, or roughly the total amount of U.S. imports from China a year ago.

The Foreign Ministry in Beijing said retaliatory measures "took effect immediately", with state news agency Xinhua confirming they involved 25% tariffs on an equal amount of goods.

Lynn Rohrscheib, chairwoman of the Illinois Soybean Growers, who farms near Moweaqua, called Friday for a return to free trade and access to the Chinese market.

While economists say the consequences of a spat between the world's two largest economies can be contained for now, there are fears that Donald Trump's stance on trade could cause serious damage to the global economy.

Companies worry the spiraling dispute could chill global economic growth.

Financial markets seemed to take the latest developments in stride.

Ballpark estimates from economists show that every $100 billion of imports affected by tariffs chip away around 0.5 per cent of global trade, wiping off 0.1 percentage points of GDP growth. President Donald Trump on Friday announced that the US could impose additional tariffs on more than $500 billion in Chinese imports, or roughly the total amount of Chinese imports annually into the USA, according to an article from Reuters.

Judging by the retaliatory tariffs targeted at the range of United States agricultural goods so far, China also seemed to be avoiding an escalation in trade tensions, analysts said.

Ant-Man And The Wasp US box office down on expectations
The Benicio Del Toro and Josh Brolin-led sequel picked up another $7.6 million, taking the domestic tally to $35 million. Ant-Man and the Wasp had a worldwide opening of $161 million, including $85 million internationally this weekend.

Chinese officials have rejected the accusations of theft and said no foreign company is obligated to share technology.

"If U.S. -China trade tensions intensify, it would have an adverse effect on not only China but surrounding countries" that have close economic relations with Asia's biggest economy, said Toru Nishihama, chief economist at the Dai-ichi Life Research Institute.

It is unclear whether the Trump administration appreciates how integrated the global economy has become or have properly thought through the consequences for the U.S. if Xi Jinping and the European Union leadership refuse to blink and subsequently cave in to the USA demands that they sell less to the United States and buy more from it.

But Trump has said his administration will respond to retaliation from Beijing with much bigger waves of tariffs, raising the prospect of worsening tit-for-tat reprisals.

World stock markets rose and the euro climbed to a three-week peak on Friday as the threat of tariffs by the United States and China on billions of dollars of trade became a reality, though concerns about the conflict escalating capped the appetite for risk.

Retaliatory measures by China also include taxes on imports of a variety of U.S. dairy products.

A model by Pictet Asset Management reckons a 10 per cent tariff on United States trade fully passed on to consumers could tip the global economy into stagflation and knock 2.5 per cent off corporate earnings globally. It opened markets for US farmers but led some American automakers to shift production to low-wage Mexico and to then ship cars back to the United States duty-free.

"There are no winners in a trade war", said the chamber's chairman, William Zarit, in a statement.

"We urge the two governments to come back to the negotiation table", said Zarit.

Related Articles

  • West Brom lands Manchester United goalie

    West Brom lands Manchester United goalie

    Watford completed the signing of Ben Foster from West Brom on a two-year deal while also adding Sweden worldwide Ken Sema.
    European Leaders 'Scared to Death' Trump Will Pull US Troops

    European Leaders 'Scared to Death' Trump Will Pull US Troops

    He said that he expected leaders, including Theresa May and President Trump , to agree a number of initiatives at the summit to provide a...
    Finch rises to the top of T20I rankings

    Finch rises to the top of T20I rankings

    Among the bowlers, legspinners Rashid Khan and Shadab Khan retained the top two positions but there were movements down the table. Short put on 95 for the first wicket with Finch (47 from 27 balls) despite him struggling for momentum early in his innings.
  • North Korea says talks with Pompeo were 'regrettable'

    North Korea says talks with Pompeo were 'regrettable'

    Despite the NBC report and North Korea's statement, Pompeo still claimed the rogue nation is committed to dismantling its nuclear program.

    Who’s that? Kylie Jenner shows off thin lips after removing all fillers

    The " Keeping up with the Kardashians " star replied: "I got rid of all my filler" followed by three anxious face emojis. During a six-minute clip, Jenner admits that she "bounced back fast", but that her body is not how it was pre-pregnancy.
    At least 10 killed as train derails in northwest Turkey

    At least 10 killed as train derails in northwest Turkey

    Turkey's audiovisual authority RTUK later said the government has issued a temporary ban on broadcasting images from the scene. Television images showed emergency personnel at the crash site, as army announced that it has sent helicopters to the area.
  • Brendon Hartley:

    Brendon Hartley: "I’m fine, but the auto definitely wasn’t!"

    On top of that, the team faces a fix job to ensure Hartley's vehicle is ready for qualifying, which starts at 2pm local time. Hartley was able to walk away from the incident, but the severe damage to his Toro Rosso means he might miss qualifying.
    Samsung India puts Noida on top with world's largest mobile factory

    Samsung India puts Noida on top with world's largest mobile factory

    Modi visited South Korea in May 2015 during which the bilateral partnership was elevated to a special strategic partnership. The Noida plant utilised the investment of Rs 4,915 crores which was announced by the company in June a year ago .
    Tropical Storm Chris could become hurricane

    Tropical Storm Chris could become hurricane

    It is said Beryl will "degenerate into a trough of low pressure" as it moves into the eastern caribbean sea by Monday. Tropical Storm Chris is expected to bring swell and showers to Bermuda towards the middle of this week.
  • Ontario won't pay for Trudeau's illegal immigration 'mess,' Ford says

    Ontario won't pay for Trudeau's illegal immigration 'mess,' Ford says

    Tory said he has been on the phone with fellow Ontario mayors, looking for other landing spots for newcomers. Is the economy, so we must be sure that create good-paying jobs for all residents of Canada and Ontario.
    Maisie Williams bids a bloody farewell to 'Game Of Thrones'

    Maisie Williams bids a bloody farewell to 'Game Of Thrones'

    Maisie Williams is saying goodbye to her role of Arya Stark and the series Game of Thrones , which recently wrapped filming . Maisie went on to explain how she has never found Game of Thrones misogynistic, despite many criticising it for just that.
    Fernando Hierro cutting all ties with Spain setup

    Fernando Hierro cutting all ties with Spain setup

    Former Chelsea forward Diego Costa was alleged to have clashed with Hierro before crashing out to Russian Federation during the penalty shootout.