China 'counterattack' expected after U.S. tariffs take effect

China 'counterattack' expected after U.S. tariffs take effect

Kerry Wise
July 8, 2018

On Thursday, Trump said higher tariffs on an additional $16 billion in Chinese goods were set to take effect in two weeks.

Trump maintains the tariffs will pressure China to address trade complaints from the United States, including intellectual property theft.

With that now looking likely there are fears the world faces a wide scale trade war - with the U.S. also targeting Europe and Canada.

So you don't think these US tariffs and Chinese counter tariffs today are here to stay?

China will also start collecting a 25 percent levy on $US34b of USA goods such as agricultural products and cars.

Russian Federation is introducing extra duties on a range of products imported from the United States that can be replaced by locally made equivalents.

A USA court on Friday imposed the maximum US$1.5 million fine for theft of trade secrets by the Chinese company Sinovel in a case that typified Washington's complaints about Beijing's conduct.

The Trump administration has already threatened to raise the stakes.

On Thursday, Trump warned that the United States may ultimately target over $500 billion worth of Chinese goods, or roughly the total amount that the United States imported from China past year.

'We urge the two governments to come back to the negotiation table, ' said Zarit. "So we have 50 plus 200 plus nearly 300". Chinese officials reject accusations they steal or force foreign companies to hand over technology.

Ma Jun, a member of the monetary policy committee of the People's Bank of China, told Chinese media that the trade war is estimated to push down China's gross domestic product by 0.2 percentage point against a backdrop of a downturn in exports.

Trump has also called the state of trade between the USA and the EU "unfair", as official data shows a large trade surplus for the Europeans.

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For the time being, analysts say it's hard to see Washington or Beijing backing down in the dispute.

Numerous farmers interviewed on their properties voted for Trump.

What do China and Russian Federation say?

Al Jazeera's Rob McBride, reporting from Beijing, said that while the $34bn in goods "doesn't equate to a huge amount given the size of the world's biggest economies, it is more the gesture and what is might lead to". "China would never start a trade war, but if any party resorts to an increase of tariffs then China will take measures in response to protect development interests".

The state-run China Daily fumed: "In effect, the Trump administration is behaving like a gang of hoodlums with its shakedown of other countries, particularly China".

With only $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 in China.

German Chancellor Angela Merkel, seeking to avoid a trade war, has expressed support for eliminating the EU's auto tariffs.

During an official visit to Bulgaria, China's No. 2 leader, Premier Li Keqiang, said "no one will win by fighting a trade war, yet China will take countermeasures in the face of unilateral moves". "There is no obvious end to this", said Louis Kuijs, chief Asia economist at Oxford Economics.

"But it is applying the brakes to a global economy that has less durable momentum than appears to be the case".

"Soybeans are the top agriculture export for the United States, and China is the top market for purchasing those exports", Heisdorffer said in a statement.

Chinese shares, which have been battered in the run-up to the tariff deadline, slipped further from early deals and pulled Asian markets down, while the yuan currency also weakened. We will not have to hunt our food with pointy sticks. The Shanghai Composite closed 0.5% higher, but ended the week 3.5% lower - its seventh consecutive week of losses.