Trade fight could slow United States growth, economists say

Ann Santiago
June 22, 2018

The White House said Monday evening that if China goes through with its promise to retaliate against the USA tariffs announced last week, the United States will impose tariffs on an additional $200 billion worth of Chinese goods. He said China's previous attempts to defuse the situation - China reportedly offered to purchase billions of dollars' worth of U.S. agricultural and energy products - were not enough. The Chinese government responded with same coin.

"I think that the other side may have underestimated the strong resolve of President Donald J. Trump", Navarro added.

The potential tariffs announced by Trump come as the USA and China both announced plans to impose tariffs on up to $50 billion worth of goods imported from the other country.

But figure is voluminous and it makes it very clear what it says: A reprisals driven by regime of Xi Jinping. China responded in kind by announcing tariffs on American imports. The decision is full of many key rural territories in trumpist vote.

The Chinese retaliation pattern shows that China intends to follow Donald Trump with "equal scale and equal strength" on every move he takes against China. Hence 200 billion on table.

"These tariffs will go into effect if China refuses to change its practices, and also if it insists on going forward with the new tariffs that it has recently announced", he added.

The battle between Trump and Beijing has kicked into high gear over the past week.

Goldman Sachs said it expected China to adopt a slightly easier monetary stance in the face of tit-for-tat tariffs between Beijing and Washington that, while likely to have limited immediate impact on the economy, were at risk of escalating. China doesn't import enough goods from the match the scale of Trump's proposal but could adopt other methods.

Global stocks dropped Monday on concerns over trade as the US and China scheduled the start of tariffs on each other's goods, and a row over migrants threatened the German government. The Chinese Commerce Ministry responded that it would "strike back hard" with "measures that match the United States move in quantity and quality". -Chinese dispute but share the complaints of their American counterparts about market barriers and unfair regulation.

The United States has now imposed tariffs on up to $450bn in Chinese goods, out of a total of $500bn.

The New Yorker warned that he will not lower his revolver in what seems to be a full-fledged duel. In other words, the economic conflict between China and the U.S. can potentially go beyond tariffs and directly disrupt the global economy. Thus, for example, China is presumably withdrawing its commitment to strengthen cooperation between the two countries in the agriculture and energy sectors, including reportedly an offer to purchase $70 billion worth of USA agricultural and energy products and other goods. The Australian dollar tumbled as commodity currencies weakened amid renewed concern over trade protectionism.

In first compasses, commercial war was declared with a lot of noise and few walnuts, ie with thick sentences of Trump, but reduced economic figures.

"In this trade war, it's the US who is playing the role of provocateur, while China plays defence", said the Global Times, a newspaper published by the ruling Communist Party.

U.S. light crude oil hit a two-month low of US$63.59 a barrel before recovering somewhat to trade at US$64.72, down 30 cents, by 1100 GMT.

Shanghai stocks tumbled almost 4 percent on Tuesday to a two-year low, while the yuan fell to a more-than-five-month low against the dollar as Washington's fresh tariff threats against China raised the spectre of a full-blown trade war.

In a surprising move, Chinese smartphone marker Xiaomi said on Tuesday that it would postpone its application for a mainland share offering until after it completes a separate listing in Hong Kong.

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