Published: Sun, July 15, 2018
Markets | By Josh Butler

China shocked by Trump’s upscaling of trade aggression

China shocked by Trump’s upscaling of trade aggression

Soon after the imposition of US President Donald Trump's 25% tariff on $34 billion worth of Chinese goods, China's Ministry of Commercestruck back with tariffs of equal sizeon some US exports to China.

Officials will hold hearings in late August on the list of targeted products and an administration official said it would take about two months to finalise, at which point Trump would decide whether to go ahead with the levies.

China's Commerce Ministry called the new wave of US tariffs "totally unacceptable" and vowed to protect its core interests. "There is no justification for such action", he was quoted as saying in a statement.

While cranking up the tariff war, the United States has also indicated its willingness to talk.

"Concerns over trade and trade wars are really having an adverse effect, less so on the US markets than the global markets, but it is certainly taking a bite".

The $200 billion far exceeds the total value of goods China imports from the United States, which means Beijing may need to think of creative ways to respond to such USA measures. Each side is planning tariffs on a further $16 billion in goods that would bring the totals to $50 billion.

Market drops started in Asia overnight, with all of China and Hong Kong's share indexes losing more than 1%.

Concerns about an escalating U.S.

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Rescue workers wearing protection suits wait for some of the rescued schoolboys at military airport in Chiang Rai on Monday. When asked about his first reaction as he saw the first set of boys who were rescued he admitted that he was "very scared".

Man looks at the Pudong financial district of Shanghai Thomson Reuters SHANGHAI (Reuters) - Most U.S. businesses operating in China oppose the use of tariffs in retaliation for the challenges they face, from an uneven playing field to poor protection of intellectual property rights, a survey showed on Thursday.

The survey showed 53 percent of companies increased investment in 2017, down from 55 percent the year before, highlighting a trend of reduced investment growth since a 2012 peak, when 74 percent of respondents said they had boosted investment in China.

It seems the guidance from Trump is to escalate the trade war, rather than negotiate an end to it. Imposing taxes on another $200 billion worth of products will raise the costs of every day goods for American families, farmers, ranchers, workers, and job creators.

"USTR will proceed with a transparent and comprehensive public notice and comment process prior to the imposition of final tariffs, as we have for previous tariffs". But it also points out that American cars assembled in China will equally bear the brunt of the tariff war.

The impact of tariffs imposed Friday on the world's second-largest economy should be limited, according to private sector analysts. BMW and Great Wall said their venture will also make electrics for the Chinese partner's brand. "Authoritative sources of the world economic circles have said that the irrational behavior of the U.S.is unsafe, hurts itself and others, and is discredited".

Holding on to the outdated zero-sum mentality and willfully launching the trade war not only undermines interests of the two parties directly involved, but also others in the global industrial chain, and there will be no victor, Hua said.

The U.S. ambassador to the World Trade Organization is calling for the global trade body to update its rules to deal with complaints about Chinese industrial policies that he said harm other countries.

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