Published: Fri, June 15, 2018
Money | By Armando Alvarado

As trade war with China looms, US readies second wave of duties

As trade war with China looms, US readies second wave of duties

"China chooses the first", said Chinese State Councillor Wang Yi.

Wall Street has viewed the escalating trade tensions with wariness, fearful that they could strangle the economic growth achieved during Trump's watch and undermine the benefits of the tax cuts he signed into law a year ago. "His fundamental commitment to the "deplorables" on the campaign trail was that he was going to bring manufacturing jobs back, particularly from Asia".

The Trump White House is turning its trade war arsenal back on China.

Trump no longer believes that Beijing's influence over North Korea is a compelling reason to ease up on trade talks now that his administration has opened up a direct line of communication with the nuclear-armed country, [an] administration official said.

It remains unclear when Trump will activate the tariffs if he decides to do so.

'That's what has gotten us to the situation today where the Chinese are actually at the table, ' Bannon said.

"If and when tariffs are implemented, China has already outlined its retaliation in the form of a 25 percent tariff on 106 USA goods worth $50 billion", B. Riley FBR's Salisbury wrote. 'It's really not just tariffs, it's tariffs on a scale never before considered'.

"If the USA takes unilateral and protectionist measures that harm Chinese interests, we will respond immediately by taking the necessary decisions to safeguard our legitimate rights and interests".

He did not specifically mention the tariffs and added that he had "a very good relationship with President Xi [Jinping] of China". While China hopes that talks can succeed in resolving the dispute, "it is high time that China and other major economies joined hands to better cope with the challenges created by the US's aggressive pursuit of trade advantages", the editorial said.

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Scott Kennedy, a specialist on the Chinese economy at the Center for Strategic and International Studies, said the Chinese threat was real and helped along by recent strains exhibited among the United States and allies.

"I suspect Trump also sees these announcements as a way of pressuring China into action on trade - so more classic Art of the Deal stuff".

Asked how strong, Trump said: "Well, I think very strongly".

At the recent G-7 Summit meeting in Quebec, the first such summit ever to fail to produce a joint communiqué, President Trump served notice to America's allies that his country had no shared interests that deserved precedence over boosting exports.

Ron Moore, who farms 1,800 acres of corn and soybeans in Roseville, Illinois, said soybean prices have already started dropping ahead of what looks like a trade war between the two economic powerhouses. The big question Canada and the European Union must answer for themselves, now, is whether Trump is an unfortunate temporary anomaly, or merely the first in a coming succession of "America First" presidents. "But it's different when you're dealing with other governments". The United States has criticized China for the aggressive tactics it uses to develop advanced technologies, including robots and electric cars, under its "Made in China 2025" program. (ZTCOY.PK) In April, the USA banned ZTE from buying American technology for seven years, effectively putting the company out of business.

The administration is also working on proposed Chinese investment restrictions by June 30.

"These measures, though, are likely to move the globe further away from an open, fair and rules-based trade system, with adverse effects for both the USA economy and for trading partners", the International Monetary Fund said.

"The president's trade team has recommended tariffs".

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