President Donald Trump moved closer to an all-out trade war with China on Friday by announcing new 25 percent tariffs on $50 billion worth of technology imports, dealing a blow to Chinese industries and prompting retaliation against USA products. “This situation is no longer sustainable”. A date for those tariffs has not yet been made publicly available.
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Earlier, trade expert Stephen Jacobi told NBR that while New Zealand has few exports in the areas targetted by Mr Trump for tariffs (our steel and aluminium exports to the USA past year totalled $60m), there could be a substantial indirect cost. They view plans for state-led development of companies capable of competing globally in fields including electric cars, renewable energy and biotech as a route to prosperity and to restore China to its rightful role as a world leader.
A lot, but not a lot. Of that, the United States is now exporting about 2 million bpd, and Trump has touted dominance in energy production and export as key to American global influence. In that year, the USA says its goods trade deficit with China was $375.2 billion.
If tariffs are imposed on the full amount in the second list, that would bring the total goods sanctioned to US$50 billion.
Thomas Donohue is president of the U.S. Chamber of Commerce.
After the White House said it would slap a 25 percent tariff on 1,100 Chinese imports, China’s foreign ministry accused the US of flip-flopping and vowed to retaliate in kind. Goods like televisions and birth control, which had initially been proposed for inclusion, were removed from the final tariff list.
But those tariffs will have an effect on the domestic economy.
Tariffs on about $34 billion in Chinese imports will go into effect July 6.
The government also unveiled a list of USA products which will be subjected to additional tariffs, it said.
“These tariffs are essential to preventing further unfair transfers of American technology and intellectual property to China, which will protect American jobs”. “Both U.S. and Chinese exporters will suffer considerable economic losses while these punitive tariffs are in place, and many Asian countries that are part of the Chinese manufacturing supply chain will also suffer collateral damage in this escalating trade war”.
Meanwhile, Chinese companies use government money to buy US businesses.
Administration officials have signaled support for imposing the tariffs in a dispute over allegations that Beijing steals or pressures foreign companies to hand over technology, according to officials briefed on the plans.
The administration wants the Chinese government to change its ways on all these fronts. It also said that earlier commitments made on trade were now off the table. After some skirmishes related to washing-machine and solar-panel tariffs, Trump struck the first direct blow at China in March with the announcement of tariffs on Chinese goods.
Washington and Beijing appeared increasingly headed toward open trade conflict after several rounds of negotiations failed to resolve US complaints over Chinese industrial policies, lack of market access in China and a $375 billion USA trade deficit.
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It also called on other countries to “take collective action” against this “outdated and backwards behaviour”. The reason for the 18 percent price hike, the dealer told him, was the tariff Trump applied to imported aluminum.
