New tariffs readied for Chinese goods
- Author: Rogelio Becker Jul 12, 2018,
Jul 12, 2018, 19:58
There is a two-month period of public comment on the latest proposed list before the tariffs get imposed. World stocks again tumbled on Wednesday.
Oil prices were also hit by the trade war concerns.
"Rather than address our legitimate concerns, China has begun to retaliate against U.S. products", Lighthizer said in a statement.
China has said it will have to take what it called necessary counter-measures after the U.S announced plans for more tariffs on imports.
"We are stronger together than apart", North Atlantic Treaty Organisation secretary general Jens Stoltenberg claimed in a retort to Mr Trump's comments but the USA leader countered by asking how the North Atlantic Treaty Organisation alliance could be stronger when Germany is "making Russian Federation richer", referring to energy pipeline deals Berlin recently has signed with Moscow.
President Trump published a list of Chinese goods he will give a tariff of 10 percent on, which are worth a total of £151 billion.
"Tariffs on $US200 billion in Chinese products amounts to another multibillion-dollar tax on American businesses and families", said Scott Lincicome, a trade lawyer and senior policy analyst for the group Republicans Fighting Tariffs.
But China also faces difficulties in retaliating directly: it ships far more goods to the United States ($506 billion previous year, according to U.S. figures) than come back in the opposite direction ($130 billion).
From blue jeans to motorbikes and whiskey, the EU's hit-list of products targeted the most emblematic of American exports.
China grew into an economic superpower by becoming a major exporter, rapidly developing a large and highly efficient manufacturing base that enabled it to sell cheap products all over the world. However, it will be unable to respond in equal measure because total United States exports to China only amounted to $US154 billion previous year.
That's not to say that China is eager for a trade war or can afford to be indifferent to its consequences, says David Dollar, who was the U.S. Treasury Department's financial emissary to China during the Obama administration.
Unlike Trump, Chinese leader Xi Jinping doesn't need to worry about midterms or congressional oversight when he acts.
However, Mexico's firebrand President-elect Andres Manuel Lopez Obrador, known as "AMLO", has vowed to work with the United States to revise the trade pact.
For instance, $1 million worth of foreign steel would cost $250,000 more under Trump's tariffs.
Farmer Terry Davidson walks through his soy fields July 6, 2018, in Harvard, Illinois, the same day China imposed retaliatory tariffs aimed at the U.S. soybean market.
So far, China has been measured in its response to the new U.S. trade policy.
Trump argued the original deal from 2012 was lopsided in Seoul's favor, but has also clouded the issue by appearing to link trade concessions to progress in his separate track of talks with nuclear-armed North Korea. Beijing immediately responded with its own tariffs on United States goods worth $34 billion.
Trade relations were already strained by USA sanctions targeting oligarchs and businesses accused of supporting President Vladimir Putin's alleged efforts to undermine Western democracies.
If he goes ahead it would mean thousands of products from fish to chemicals, metals and tires would face new taxes.