The American-Chinese Trade War: What is Going On?

The American-Chinese Trade War: What is Going On?

Troy Powers
June 21, 2018

The fourth round of tariffs constitutes Washington's June 18 threat to apply 10 percent tariffs on an undetermined list of goods valued at $200 billion - possibly in response to China's retaliation to previous rounds of US tariffs.

The White House is defending President Donald Trump's threat to impose tariffs on at least $200 billion worth of Chinese goods, arguing the trade penalties are "necessary to defend this country". On Friday, the president imposed a 25% tariff on $50 billion worth of imports from China.

Russia's economic development minister revealed Tuesday that his government was prepared to side with China in a burgeoning global trade war with the U.S.

At 11:01 a.m. EDT the Dow Jones Industrial Average was down 339.21 points, or 1.36 percent, at 24,648.26.

"Faced with this heightened intimidation from the U.S., China has no choice but to fight back with targeted and direct measures aimed at persuading the U.S.to back off, since it appears that any concessions it makes will not appease the Trump administration, which wants to suck the lifeblood from the Chinese economy", the paper said. The news hit stock markets in Asia, where Shanghai shed 3% in the morning, Hong Kong lost more than 2% and Tokyo was 1% lower.

Trump continued, "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". In a statement, Trump said that if China retaliated, he would order yet another $200 billion in tariffs.

Earlier Wednesday, Canadian Foreign Affairs Minister Chrystia Freeland said she was heartened by the remarks of Trump's point person on tariffs.

The tariffs on Chinese imports are the latest in a spate of protectionist measures unveiled by Trump in recent months.

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Still, economists and business executives say there's still some prospect that a full-blown trade war can be avoided.

Reciprocal treatment is a key concern from companies in China, regardless of whether they are from Europe and America.

According to investing.com, the dollar index fell about 0.15% to the level of 94.27 at 12:30 and the USDJPY slid about 0.74% to 109.73 after President Trump Annulment about the Tariffs. Soybeans are among hundreds of USA products China has singled out for tariffs.

"The U.S. market has acted much stronger than the global equity markets", said Michael O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut.

Ms Ghanyapad said the likelier scenario is more opportunities for Thai exports to China to replace USA products, as well as United States goods replacing those Chinese goods that are subjected to higher tariffs.

President Donald Trump's plans to place tariffs on more Chinese goods are worsening Arkansas' soybean industry, according to farmers. "China relationship", Mr. Navarro told reporters, citing the trade imbalance and China's campaign to acquire US technology "by any means necessary". China has already taken aim at some of these products, such as pork imports, as part of its response to the United States' initial steel and aluminum tariffs in March.

Wall Street has viewed the escalating trade tensions with wariness, fearful they could strangle the economic growth achieved during Mr Trump's watch. "It's time, folks. It's time", Mr Trump said.

"With respect to Tim Cook and exceptions, I have no knowledge or comment about that", Navarro said on a call with reporters on Tuesday.