The Dow Jones industrial average dropped more than 700 points as investors feared that trade tensions between the world’s largest economies would escalate.
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The Commerce Ministry in Beijing urged Washington to negotiate a settlement, saying tariffs undermine the global trading system.
China’s plans for reciprocal tariffs of $3 billion on products from pork to wine represent a tiny fraction of its US imports.
President Donald Trump has threatened to impose the tariffs in retaliation for China’s disregard for USA intellectual property.
China has repeatedly said it has no wish to fight a trade war, but warned that it is ready if needed. South Korean tourist-industry companies were hit previous year when Chinese package-tour operators curtailed visits amid a political spat.
And Beijing has already begun taking military action. In 2017, the goods and services deficit was $375 billon.
It didn’t take long for China to threaten to hit back.
In a separate case, he also ordered tariffs on about $60 billion of Chinese goods, again bypassing WTO arbitration.
US apple growers just got their foot in the door in China in 2015, and the country is now their 10th-largest market, with demand growing. But in a sign that he will still turn to the WTO when it suits his interests, Trump had his government file a complaint through the organization to try to stop China from allegedly stealing technology from USA companies that operate there. “China is strongly disappointed and firmly opposes such an action”. “Many things are happening in a short space of time”. Sometimes by buying our companies.
“President Trump is right to take a hard line against China’s dishonest trade practices, which have clearly harmed American workers”, said Ways and Means Chairman Kevin Brady, R-Texas. Trump said he will make a decision on whether to continue these exemptions by May 1. USTR has up to 15 days to seek public comment and decide on the list of proposed tariffs.
“Sticks matter more than flowers on the path to peaceful reunification”, it said. After his top trade officials said the Sunday before the announcement several weeks ago that there would be no exemptions, Trump gave Canada and Mexico a pass at the signing ceremony.
Industry groups said they’d welcome effective and narrowly focused remedies against China. China can tie up imports in red tape at the border, slap export taxes on goods heading to the USA and put tariffs on crops like sorghum and soybeans grown in some politically important farming states. It also addresses the issue of China forcing companies to hand over their technology to do business there.
Meanwhile, it will have a negative effect on the stock markets because “investors will worry that we’re heading for a trade war and worry about the effect”, said Levine, who has worked at the U.S. Department of State and Department of Commerce, adding it also depends on how China reacts.
Among the main concerns at the WTO over the Trump administration’s move on steel and aluminum is that it is citing national security as a reason.
These Chinese policies hurt innovators in the United States and worldwide by interfering with the ability of foreign technology holders to set market-based terms in licensing and other technology-related contracts, it said.
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The National Retail Federation (NRF) opposes the US tariff action, arguing a trade war would result in higher prices for a wide range of consumer products and basic household goods.
