China Cancels U.S. Soybean Purchases as Trade War Takes Hold

China EU USA trade war alliance Donald Trump President Xi

China EU USA trade war alliance Donald Trump President Xi

A trade war between China and the United States - the world's largest economies - began on Friday as the two sides started slapping additional tariffs on each other's goods, worth almost $70 billion, a development that could impede global economic recovery.

Twenty-five percent USA tariffs took effect at midnight and affect more than 800 Chinese products - including industrial machinery, office equipment, electronics, medical devices and vehicles.

OSA cited an Ohio State University study that suggested these tariffs could lead to a 59 percent decrease in Ohio farmers' net income, and a Purdue University study suggesting total US soybean exports to China could drop by 65 percent.

The first ever United States tariffs aimed just at China will likely rally Trump's voters who agree with his "America First" argument that Beijing hasn't played fair for years, stealing America's intellectual property and undercutting its manufacturers.

The US and China on Friday launched tit-for-tat tariffs on each other's imports, the opening shots in what Beijing called "the largest trade war in economic history" between the world's top two economies.

U.S. tariffs on $34bn in Chinese imports took effect as a deadline passed on Friday, and with Beijing having vowed to respond immediately in kind, the world's two biggest economies took a high-stakes turn towards all-out trade conflict.

Friday saw the Trump administration slap tariffs on a wide range of Chinese imports valued collectively at around $US34b a year. If his administration went ahead with that threat, it would raise the total of targeted Chinese goods to potentially $550 billion - more than the $506 billion that China actually shipped to the United States past year. A China central bank adviser, Ma Jun, said United States tariffs on $50bn worth of Chinese goods will shave 0.2 percentage points off Chinese growth. "The countdown is on as to what Trump will do next".

Beijing's response came within minutes as it imposed a series of levies on a similar quantity of USA imports.

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White House Press Secretary Sarah Sanders said while Xi's response was encouraging, the Trump administration needs to see "concrete actions from China".

"We just want what we had before", he said. Now, he's anxious that the trade dispute between the US and China could hurt his and other producers' bottom line. In a Fargo rally last week aiming to boost Heitkamp's Republican challenger, Rep. Kevin Cramer, Trump said he was seeking "fair and reciprocal" trade relations.

This trade war will hit American agricultural exports such as pork and soybean hard, but if President Trump ups the ante, products like televisions and other household goods could also be hit, meaning consumers will face higher prices, Matthew Shay, president of the National Retail Federation, told the Associated Press.

Chinese officials reject accusations of theft and say no foreign company is obligated to share technology.

'There should be no doubting Beijing's resolve, ' the newspaper said.

It might be the trade war of the century, but US and Asian markets were not rattled by the formal start of the US-China trade war on Friday.

"My hope is that with this start, people will feel that this cost is too great and we will not move on to the second wave", Jarret said, The Post reported.

In retaliation, the European Union and Canada slapped tariffs in a tit-for-tat move.

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