Explained: US-China Trade fight and what happens next

This isn’t a surprise as Iowa is the second largest soybean producer in the country with hundreds of millions of dollars at stake should China decide to source its soybeans elsewhere.

U.S. Wheat Associates and the National Association of Wheat Growers issued a joint statement Wednesday indicating that, with the backlash from the proposed 25 percent tariffs on Chinese goods, “hard-working U.S. farmers are clearly in the line of fire from what looks more and more like an escalating trade war with China”.

“The seeds of a more serious conflict are there”, said Adam Slater, lead economist at Oxford Economics, a consulting firm.

The possibility of an escalating U.S.

Aside from the direct effect on the industry’s kit, there are broader fears that a dip in the global economy would slow demand growth. “It’s very hard to put a specific time denomination on negotiations that are as complex as these”.

A public hearing will be held on 15 May for businesses to voice their concerns, and 22 May is the final day for comments. Bonus! So will many American universities!

Beijing’s list of 106 products included the biggest USA exports to China, reflecting its intense sensitivity to the dispute over American complaints that it pressures foreign companies to hand over technology.

Mexico produces numerous goods targeted for US tariffs on Chinese imports such as televisions and electrical circuits, he said in a report. It’s part of the process, ” Reuters said.

Nor has China set a date for imposing tariffs on the 106 products it has targeted.

The prospect of a negotiated end to the dispute calmed nerves on Wall Street. The Dow Jones industrial average plunged 501 points after the opening bell but recovered the losses and ended in positive territory, rising 230.94 points, or 1 percent, to 24,264.30. President Donald Trump claims the U.S. is importing steel and aluminum at unfairly low prices as China’s oversupply is reducing global prices. On Monday, China countered by announcing tariffs on $3 billion worth of USA products.

Earlier in the week, Beijing announced separate import duties on US$3b of USA goods in response to the Trump administration’s duties on all steel and aluminum imports, including from China. In dealing with the problems concerning the transfer of technology, Japan, the United States and European countries have discussed making a joint appeal to the World Trade Organization. Another free-trade port with fewer trade restrictions, in Hainan Island, has also been speculated.

After firing the opening shots of a trade war, China and the USA have entered what is likely to be a protracted standoff as they jockey to win concessions from each other and avoid hurting their respective economies. These included aerospace, telecoms and machinery.

Will the dispute hurt the U.S. economy? German sportswear brand Adidas, for example, could make inroads to the detriment of US rival Nike. “It’s going to take a lot to derail this economy”.

Foreign companies are increasingly alarmed by initiatives such as Beijing’s long-range industry development plan, dubbed “Made in China 2025”, which calls for creating Chinese global leaders in electric cars, robots and other fields. American stock indexes rose sharply on Wednesday, buoyed by indications from both sides that the announcements are a prelude to negotiations and will not be put into action. The tariffs proposed Tuesday were the result of that investigation.

While Trump posted defiant messages on Twitter, his administration signalled possible wiggle room.

The “doom and gloom” camp, which includes many prominent members of Trump’s Republican faction, invokes the Great Depression years of the 1930’s, the time of Smoot Hawley tariffs, and worldwide retaliations that choked trade. After all, China buys almost 60 percent of American soybean exports.

“The people who will truly suffer are American farmers and factory workers – the people he (U.S. President Donald Trump) claims to be helping”. Max Baucus, co-chair of Farmers for Free Trade.

Kudlow later told Fox News Channel: ‘I don’t think it’s a trade war.

USA aviation-related exports to China totaled $13.2 billion in 2016.

The President wasted little time in replying via his favorite medium, Twitter, less than an hour after the Chinese announced their tariff plan. -China trade friction. This situation was created by the shallow thinking of Trump, who disregards global trade rules and focuses on bilateral trade.

On Wednesday, China said it would not be bullied by the USA imposing punitive taxes on its products.