Donald Trump Readies New Tariffs for China

Scott Sinklier  Newscom

Scott Sinklier Newscom

"If China takes any actions to harm our companies operating in China or otherwise try to harm any corporate entity, farmer, ranch or whatever, those constitute actions which aren't acceptable and this president will have the back of Americans whether they're here on a farm in Iowa or Shanghai trying to operate". Chinese imports worth $US34 billion will be subject to the new 25% tariff as og July 6, with another $US16 worth of imports subject to the tariff at a later date.

"History shows that there are various other measures [China] could take to inflict pain on USA companies. including scaled up health, safety and tax checks, delaying the imports of goods, and boycotts", warned Louis Kuijs, the head of Asia economics at Oxford Economics.

The U.S. blocked ZTE's access to U.S. suppliers in April, saying the company violated a 2017 sanctions settlement related to trading with Iran and North Korea and then lied about the violations.

"Everybody will have their eyes on the Russell 2000 because people begin to think small-cap USA companies, that aren't subject to the winds of worldwide trade negotiations, is the right place to hide out", said Michael Antonelli, managing director, institutional sales trading at Robert W. Baird in Milwaukee.

Trump directed the US Trade Representative's office to begin drawing up a list of $200 billion worth of Chinese goods to hit with a 10% tariff, dwarfing the size of previous trade actions against China. The tariffs were the result of an investigation by Commerce Department into the theft of USA intellectual property by Chinese companies.

Trump defended the tariffs as a necessary defense, aimed at discouraging China from unfairly obtaining America's technology secrets.

USA stock markets fell sharply Tuesday morning, with investors increasingly nervous about the impact of the escalating fight.

In the cash market the benchmark S&P 500 Index settled at 2773.87, down 5.79 or -0.21% and the blue chip Dow Jones Industrial Average closed at 24987.54, down 102.94 or -0.41%. Boeing's stock shed 4.3 percent, Caterpillar 4 percent and GE 2.2 percent.

USA stocks stumbled early Tuesday, the morning after President Donald Trump threatened an all-out trade war with China.

China's commerce ministry immediately responded by saying the United States "practice of extreme pressure and blackmail departed from the consensus reached by both sides during multiple negotiations and has also greatly disappointed worldwide society".

President Donald Trump is threatening to slap tariffs on another $200 billion in Chinese imports as trade tensions between the world's two largest economies reach new heights.

"If China increases its tariffs yet again, we will meet that action by pursuing additional tariffs on another United States dollars 200 billion of goods".

Shadow Health Secretary: NHS Cash Boost "Not Enough Money"
The prime minister said this would be funded in part by a " Brexit dividend ", but also hinted that there could be tax rises too. She told Andrew Marr on Sunday morning: "What we're doing is saying very clearly as a government that the NHS is our priority".

"It's kind of a lose-lose for both the people in China and the US soybean industry, and the soybean farmer", said Bardole. In 2017, the USA trade deficit with China was a record $375.2 billion, but that did not include services.

"We're seeing United States dollar strength, which has had net negative effects on cyclical commodities, and you're seeing that pressure reflected in the stocks".

The escalation in the dispute with China may also serve as a warning to other trading partners with whom Trump has been feuding, including Canada and the European Union.

Tariffs are already raising costs for some goods.

Some of the US's biggest exporters were among those most affected.

The administration has not yet said which products would be targeted in the new round of tariffs.

"The trade relationship between the United States and China must be much more equitable", he said in explaining his latest decision. Apple and the White House were not immediately available for comment.

China had offered to ramp up purchases of American goods by $70 billion to help cut its yawning trade surplus with the United States, whereas Trump had demanded a $200 billion deficit cut.

March 1: Trump announces tariffs on all imports of steel and aluminium, including metals from China.

More American targets are likely to follow as soon as the Trump administration follows through with publishing an expanded tariff list. "But, including services, the imports amounted to $US187 billion and China could impose higher tariffs than the United States in a bid to retaliate one-to-one".

Harvard Economics Professor Martin Feldstein on President Trump's trade negotiation strategy.

Gary Cohn, Trump's former top economic adviser, said last week that a "tariff battle" could result in price inflation and consumer debt - "historic ingredients for an economic slowdown".

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