China threatens tariffs on $60 billion in U.S. goods

China threatens tariffs on $60 billion in U.S. goods

China threatens tariffs on $60 billion in U.S. goods

Bona fide trade wars occur when tariff fights spill over to currency devaluations and generate currency wars.

But China is somewhat limited with the extent of what tit-for-tat trade measures are at its disposal, as it exports far more goods to the United States than it imports.

White House press secretary Sarah Huckabee Sanders says that "instead of retaliating, China should address longstanding concerns about its unfair trading practices", including those laid out in a March report by the Office of the U.S. Trade Representative.

The Chinese government did not specify what types of American products would be affected or when those tariffs would take effect.

The US trade deficit recorded its biggest increase in more than 1-1/2 years in June as the boost to exports from soybean shipments faded and higher oil prices lifted the import bill.

Ditto for trade with Mexico-Canada.

The dispute is part of broader USA complaints about global trading conditions that have prompted Trump to raise duties on steel, aluminum, washing machines or solar panels from Canada, Europe, Japan and South Korea. A 25% tariff would boost the cost of a range of USA imports at a time when inflation has begun to pick up. "China market has dropped 27% in 4months [sic], and they are talking to us". It would become another factor for the Federal Reserve to consider as it decides how quickly to raise interest rates.

Bona fide trade wars are never limited to tariffs.

The essential objective foundations of the trade war are now emerging more clearly into the open. This has occurred in spite of Huawei being nearly entirely absent from the American market.

The result is that both China and the United States are now using government funds to stimulate areas of the economy.

He has also announced $12 billion in aid to farmers hurt by the tariffs.

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Protectionist moves by the United States have drawn a response from other trading major partners. One problem: America's trade deficit jumped 7 percent in June, according to the most recent data.

Everything from oak wood to veneered panels of laminated wood has been ensnared in China's escalation of the trade battle with the U.S. Half of U.S. hardwood production is exported, and the bulk goes to China, Michael Snow, executive director of the Sterling, Virginia-based American Hardwood Export Council, said Friday in a telephone interview.

A Trump two track trade policy has been underway since early 2018.

One of Mr Trump's top economic advisors said the USA leader has no intention of backing down. China has denied violating worldwide trade norms.

The market is not large by value compared with the around $12 billion per year of USA crude that arrives in the country, but those levels could shoot up as Beijing forges ahead with its plan to switch millions of households to the fuel away from coal as part of its battle against smog. The president has said several times in the past two months, without evidence, that US Steel plans to open six or seven new steel mills.

The current differences between the United States and Mexican positions in negotiations are otherwise not significant; should Trump drop his sunset demand, which he will do when the timing for his domestic politics is appropriate - that is, just before or soon after the USA midterm elections - a deal with Mexico (and thereafter similarly with Canada) will be concluded quickly.

The same Trump flexible approach was evident in the just announced "deal" with European Commission president, Jean-Claude Juncker, who also came to Washington this past week.

Trump has repeatedly used the threat of tariffs to try to force concessions from a range of USA trading partners around the globe, and this approach has had mixed success.

Thus Marc Thiessen writes in The Washington Post that "contrary to what his critics allege, Trump is not a protectionist; rather, he is using tariffs as a tool to advance a radical free-trade agenda".

The so-called deal is merely verbal and indicate objectives the parties, United States and Europe, hope to maybe achieve, at some point undefined in the future.

Keith Weinberger, chief executive of Empire Today, a flooring company in Northlake, Ill., said he "might be able to offset" a 10% tariff on his purchases of Chinese vinyl flooring. It will be September at the earliest before the USA decides whether to impose those tariffs.

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