Farmers Could Bear Brunt Of US-China Trade War

Europe rejects China’s offer of alliance in trade war with United States

In a further move to escalate tensions between the world's two largest economies, U.S. President Donald Trump said Washington could ultimately raise tariffs on more than $500 billion in Chinese products - almost the total value of U.S. imports from the country a year ago. Beijing lodged an additional complaint with the World Trade Organization over tariffs under Section 301.

"As we open up and expand our national interests beyond borders, we desperately need a comprehensive protection of our own security around the globe", the document states.

"There are no winners in a trade war", said William Zarit, chairman of the American Chamber of Commerce in China.

What tariffs are now in effect?

"So we have 50 plus 200 plus nearly 300", Trump said, per reports from CNBC and Reuters.

The foreign ministry in Beijing said retaliatory measures "took effect immediately" with state news agency Xinhua confirming they were also 25-per cent tariffs on an equal amount of goods.

Russian Federation is introducing extra duties on a range of products imported from the USA that can be replaced by locally made equivalents.

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.

Friday's China tariff volley fuelled fears a prolonged battle would hurt global trade, investment and growth.

They are the first stage in levies threatened by the Trump administration on a total of $450 billion worth of Chinese goods.

Nancy Johnson, executive director of the North Dakota Soybean Growers Association, said prices have dropped in the past month, but "we typically are not selling a large number of soybeans at this time of the year".

"We just want what we had before", he said.

While the administration says the trade barriers will force China to stop stealing American intellectual property, it appears more likely that non-Chinese businesses will bear the brunt of the tariffs, according to an analysis by the Peterson Institute for International Economics.

The threat of a trade war has become a reality. "After the USA activated its tariff measures against China, China's measures against the United States took effect immediately", Lu Kang said, though he did not elaborate on the details of the measures.

The tension between these factions is occasionally on display in the West Wing.

For the time being, analysts say it's hard to see Washington or Beijing backing down in the dispute. The White House held back on celebrating the move.

What do China and Russian Federation say?

"The U.S. clients have already told us they would adjust the prices", said an executive of an equipment manufacturing firm with exports to the U.S.in Guangdong. The company blamed it on the trade dispute between the U.S. and China, saying the tariffs will result in "fewer than expected SUV sales and higher than expected costs". In a Fargo rally last week aiming to boost Heitkamp's Republican challenger, Rep. Kevin Cramer, Trump said he was seeking "fair and reciprocal" trade relations.

The industry only gained access to the Chinese market - the largest consumer market in the world - about three years ago. "There is no obvious end to this", said Louis Kuijs, chief Asia economist at Oxford Economics. We will not have to hunt our food with pointy sticks.

In response, China immediately slapped an identical tariff on US imports of the same value, with aquaculture products, automobiles and soybeans the hardest hit. Six months of wrangling over tariffs with the USA has wiped out about a fifth of China's stock market value. The Shanghai Composite closed 0.5% higher, but ended the week 3.5% lower - its seventh consecutive week of losses.

The dispute has roiled financial markets including stocks, currencies and the global trade of commodities from soybeans to coal in recent weeks.

Related:

Comments

Latest news

Trump challenges ‘Pocahontas’ Warren to DNA test
The #MeToo movement has been at the forefront of exposing rampant sexual misconduct and sexual harassment across multiple industries.

Steven Gerrard says England won't get better World Cup finals chance
Croatian fans are some of the most colourful and passionate on the planet, and they know how to celebrate a victory. Fans spilling out of bars chanted "Russia" in the street and danced as music blared.

Apple Music overtakes Spotify in subscriber numbers in the US
The data was specifically referring to paid users as well, so no one still on either Apple or Spotify's free trial was included. Apple Music has surpassed Spotify in total number of paid US subscribers, according to a report from Digital Music News .

Watch Miocic vs Cormier from anywhere
Pettis (21-7) staggered his larger opponent with a right hand before winning for just the third time in eight fights since 2014. Now he is ready to move back up to heavyweight for at least this fight, and he weighed in at 246 pounds, 3 more than Miocic.

UFC 226: Daniel Cormier Takes Scary Fall On Stage
His fight with Brian Ortega was scrapped and UFC 226 moved forward with just one title fight. At the time of this writing, UFC 226 will go ahead as UFC 226: Miocic vs.

Other news