U.S. places tech tariff on China, but smartphones are not affected

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CHINA-US-TRUMP-POLITICS-DIPLOMACY

Beijing's countermeasures closely mirrored Washington's, with 545 American exports, also valued at US$34 billion, facing punitive duties as of Jul 6, including agricultural products and vehicles, according to the official news agency Xinhua. Earlier, in mid-May, the USA and China had announced a cease-fire after two rounds of trade negotiations. A truce was announced in May, but it proved short-lived. Within hours of the White House's announcement, the Chinese government issued a statement threatening to "immediately introduce taxation measures of the same scale and the same strength", CNBC reports.

Other cars potentially subject to US tariff include Volvo S60 sedans, which the Chinese-owned Swedish automaker started importing to the U.S.in 2015.

Critics cautioned the president's decision could spark a trade war between Beijing and Washington, but Trump said the war was lost years ago.

While the tariffs amount to just a small portion of the economy, their impact on consumer confidence is considerable, especially as prices on goods like washing machines rise.

But Friday's announcement meant that "all the economic and trade achievements previously reached by the two parties will be invalid", the Chinese Commerce Ministry said.

Paulsen said he was thankful the White House had spared some Chinese products used in American-made medical devices, including in Minnesota.

In a joint statement, the two countries had said that China would "significantly increase" purchases of U.S. farm and energy products to reduce the trade imbalance. And they will start on the same day. The EU, along with Canada and Mexico, will impose retaliatory tariffs on US goods, and file dispute settlement cases with the World Trade Organization in Geneva.

The second set of 284 newly proposed products, covering approximately $16 billion worth of Chinese imports, are identified as benefiting from China's "Made in China 2025" industrial policy.

Consumers’ Internet Use Could Change As ‘Net Neutrality’ Ends
Last week, Senate Democrats urged House Speaker Paul Ryan, R-Wisconsin, to bring the issue to a vote on the House floor. The major issue with this tactic is that ISP customers already pay to get the whole internet at a certain speed.

Trump has long complained about China's huge trade surplus with the United States. It also added, "China is a powerful guardian and has enough ammunition to defend existing trade rules and fairness".

In a statement, he said: "The United States can no longer tolerate losing our technology and intellectual property through unfair economic practices".

Trump has threatened to hit China with duties on another $50 billion of goods if it retaliates.

U.S. Trade Representative Robert Lighthizer described the tariffs Friday as a "defensive" action.

The Dow Jones Industrial Average, which has the biggest exposure to the kind of multinationals that are most vulnerable to trade issues dropped 223.84 points, or almost 1% to 24,951.47.

Growth forecasts for major economies are already being slashed due to the rise of protectionism.

Other countries are also anxious about the world markets, as Germany's central bank cut its forecast on Friday. "Imposing tariffs places the cost of China's unfair trade practices squarely on the shoulders of American consumers, manufacturers, farmers, and ranchers", Thomas Donohue, president of the US Chamber of Commerce, said.

In fact, China's other trading partners like - Europe, Japan and few others, have also expressed similar concerns, but Trump has been unusually direct about challenging Beijing and threatening to disrupt such a large volume of exports. All have promised to hit back.

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