Trump unleashes trade war with tariffs on China

Trump unleashes trade war with tariffs on China

Trump unleashes trade war with tariffs on China

"China will not bow in the face of threats and blackmail, nor will it be shaken in its resolve to defend global free trade", said ministry spokesman Gao Feng at a news conference.

It accused the US of igniting "the biggest trade war in economic history".

Chinese state-run media reported that Beijing's measures against Washington formally took effect at 12:01 p.m. on Friday at the same time as the United States activated its tariffs against China.

The world's two biggest economies slapped tit-for-tat duties on US$34 billion worth of each other's imports on Friday, with Beijing accusing Washington of triggering the "largest-scale trade war" as they sharply escalated their conflict.

The statement added: "China had promised not to fire the first shot, but the country is forced to strike back to safeguard core national interests and the interests of its people ..."

Beijing had earlier released a target list of $34bn worth of imported United States goods including autos and agricultural products also faced 25 percent tariffs.

Trump on Thursday said higher tariffs on an additional US$16 billion of Chinese goods were set to take effect in two weeks. "We have been in trade deficits with almost every country across the globe for years, and the President wants to ensure that that doesn't continue". According to tariff supporters, this can help to save jobs that might otherwise go overseas. "There are lots of things they could do to make life hard for USA businesses operating in China that would be detrimental to us".

With only US$130 billion in USA imports to retaliate against, Beijing has said it will take "qualitative" and "quantitative" measures against the U.S., triggering fears it could cripple the operations of United States multinationals operating there.

While China has signalled a willingness to buy more American goods to balance out the deficit, it has refused to trade away what it views as an essential part of its economic future.

Asia is bracing for the opening salvo in a tit-for-tat trade battle, with the USA imposing 25 percent tariffs on $US34b ($NZ50b) of Chinese goods today.

Société Générale economists Stephen Gallagher and Yao Wei, quoted in the South China Morning Post regarding the effects on the rest of the world: "One channel of spillovers is via weakened demand from the two largest economies in the world; and the other equally important and likely quicker transmission would be along global value chains".

China's commerce ministry said it had lodged a new complaint with the World Trade Organization (WTO).

"For industries that are directly impacted by the tariffs, the impact will be immediate and big, " said Yanmei Xie, a China policy analyst at Gavekal Dragonomics, an economic research firm in Beijing.

To be sure, signs of nervousness were evident in markets with the Japanese yen and the Swiss franc firm against the dollar while core us and German bonds in demand.

Longer term though a trade war posed a risk to the recovery of the whole global economy, he said.

The Latest on the trade dispute between the United States and China as they impose new tariffs.

Trump has vowed for years to tackle Chinese trade practices, accusing Beijing of stealing USA intellectual property and slammed the $375 billion US trade deficit with the country.

China was set to hit back with taxes on an equal amount of USA products, including soybeans, lobsters, sport-utility vehicles and whiskey. Gregory Daco, head of US economics at Oxford Economics, has calculated that they would pare growth in both countries by no more than 0.2 percent through 2020.

Canatella says he hopes the tariffs are resolved before harvest season starts in October. A spokesperson for the Juice Products Association said they will have a "detrimental" impact on "the US juice industry and hurt consumers who enjoy quality American juice products".

Noticias relacionadas

[an error occurred while processing the directive]