China says will 'fight back firmly' if United States publishes additional tariffs

Irving Hamilton
June 19, 2018

But Beijing faces challenges in retaliating directly: China ships far more goods to the United States ($505 billion a year ago, according to USA figures) than come back in the opposite direction ($130 billion).

Trump had promised on Friday that if China retaliated he would hit back. "We've been treated very unfairly".

Beijing reciprocated with a similar sized tariffs package against American made goods.

Yet, while Bardole believes the ever-escalating trade war between America and China is bad for everyone involved-including the USA soybean industry and him personally-he gives the president slack on this issue.

In March Washington and Seoul announced agreement on a renegotiated free trade accord, giving USA carmakers greater access to the South Korean market.

"While second quarter GDP is now on track to print near 5 percent, the market is already looking beyond the present state and toward the ramifications from the growing sense of apprehension attributable to the trade saga". "If China increases its tariffs yet again, we will meet that action by pursuing additional tariffs on another $200 billion of goods".

People in those swing states are taking notice. "And as a USA soybean farmer with the prices below break even now, it's definitely not good for us, either". "The problem is, such a tactic is unlikely to work with China", said Kota Hirayama, senior emerging markets economist at SMBC Nikko Securities in Tokyo.

While the exact size and scope of Beijing's response is merely theoretical at this point, it's clear that the Chinese have no intention of giving in to Trump's threats. "This is the kind of thing that needs to be addressed".

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The first tranche of the US duties on goods totaling $34 billion will go into effect July 6, with the remaining $16 billion imposed at a later date. The rollout of this latest set of actions was quick and decisive, leaving little opportunity for negotiation.

So far Beijing has targeted major American exports to China such as soybeans, which brought in $14 billion in sales previous year, and are grown in states that supported Trump during the 2016 presidential election, as well as other politically important products.

As tensions continue to escalate between the United States and China over a US plan to tax $50 billion in Chinese products, Apple is concerned that China's government will create regulatory and shipping hurdles for its products, The New York Times reports today.

"In the near-term, we would expect to see volatility in markets as they attempt to price in the net impact of tariffs", said Michael Olivia, a financial planner with Westpac Wealth Partners.

Perhaps most importantly, the fast-moving nature of the back and forth means it will be hard to halt.

"I have to point out that United States remarks confused right with wrong and made irresponsible accusations against China to cover up its unilateral and protectionist moves", Chinese Foreign Ministry spokesman Geng Shuang said when asked to comment on Pompeo's statement. "That's pretty much the world's economy right there".

You may not have felt the pinch of the trade war yet, but experts say that barring big shift in direction large swathes of Americans will get hit. To understand the effects of tariffs, look no further than washing machines and solar panels. Jacob Parker, vice president of China operations at the U.S.

China's Commerce Ministry lambasted Trump's new tariff threat, saying it violated prior negotiations between the two countries. It fell 1.4 percent to Dollars 64.96 a barrel in NY, and Brent crude, the global standard for oil prices, fell 0.5 percent at USD 74.99 a barrel in London. During the 2016 election campaign, he had promised to use tariffs to cut the USA trade deficits. But last week, Trump unveiled a revised list that included several categories of chips, raising fears that tariffs could impact the U.S. technology sector.

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