China fires salvo in trade war with United States

President Donald Trump and President Xi Jinping make joint statements at the Great Hall of the People in Beijing China

President Donald Trump and President Xi Jinping make joint statements at the Great Hall of the People in Beijing China

Earlier this week, the White House said it was considering boosting tariffs on $200 billion worth of Chinese goods, raising those tariffs to 25 percent from 10 percent.

In terms of actual tariffs, or any other "trade" measure, the Trump-Juncker announcement was mostly a public relations stunt for both parties created to placate their domestic critics. "It is very early in the game, but definitely a negative effect".

"The tariffs are concerning because it's not just what's stated as the target", said Carl Paglia, Ohio Star Forge director of sales and business development.

He said: "President Trump inherited an unfair trade regime where American workers and American companies were not treated reciprocally or fairly by the Chinese, and the efforts of the Trump administration are to right that, to correct that". It is much more rational compared with the 25 percent tariff hikes threatened by the U.S. which is a trade "stick", " said Li Yong, a senior research fellow at the China Association of International Trade.

"The U.S.is in a better position to ride through the tariff concerns because of a strong economy", said Sung Won Sohn, chief economist at SS Economics in Los Angeles. "China, which is for the first time doing poorly against us, is spending a fortune on ads and PR trying to convince and scare our politicians to fight me on Tariffs - because they are really hurting their economy", he wrote on Twitter. But they have rejected changing technology development plans they see as a path to prosperity and global influence.

There's no end in sight, and the dispute could chill global trade and economic growth. Trump has ultimately threatened tariffs on over $500 billion in Chinese goods, covering virtually all US imports from China. That's a negligible amount for China, which imported 17 million tons total a year ago, according to the U.S. Census Bureau.

The highest penalties on China's new list would be imposed on honey, vegetables, mushrooms and industrial chemicals, targeting farming and mining areas that supported Trump in the 2016 election. But. the Chinese Party and the government control the media as well as a good bit of the economy.

Trump backtracked from his threat to impose tariffs on autos.

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Amazon's market cap stands at around $877 million, while Alphabet's is $851 million and Microsoft is worth about $822 million. Apple has benefitted from booming App store revenue and iPhone sales, particularly in China and Japan, CNN Money reported .

Friday's retaliation from China suggests that tactic hasn't worked.

Trump then threatened to slap a 10% tariff on another $US200 billion worth of Chinese goods, again leading to a counter-threat from Beijing.

The spokesperson pointed out that, because the United States had repeatedly escalated the situation in disregard of the interests of enterprises and consumers of both countries, China was forced to take the countermeasures to protect national dignity and its people's interests, defend free trade and multilateral mechanisms, and safeguard the common interests of all countries in the world. In exchange, Juncker offered to buy more U.S. soybeans and United States natural gas at some point in the future.

For example, he claimed that China was financing advertisements to convince Americans to stop Mr Trump's trade agenda.

The US bilateral trade deficits also expanded with China, the European Union, Canada and Mexico - all of which have retaliated against Trump's aggressive tariffs.

China proposed a 25 percent tariff on imports of copper ore and concentrate from the USA, which shipped about 70,000 tons to the country previous year.

The Commerce Department said on Friday the trade gap surged 7.3 per cent to $46.3 billion.

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