Amid Trump’s Trade War with China, Beijing Slashes Tariffs on Imports

“The world economy has been imperiled for a long time, because the largest economy in the world is running a trade deficit”, he said. “I have changed that around”, Trump said during a news conference with Polish President Andrzej Duda. They’ll also hurt US companies operating in China or using Chinese components, help their rivals in other countries, increase business uncertainty and further undermine the rules-based global trading system.

He says he’s no longer letting that happen. “I’ve not heard they’ve been canceled”.

Poland is a member of the EU. “And I think that’s still an open question”, said Hirson, who predicts Trump will likely go all-in on taxing Chinese imports in 2019.

The White House statement announcing the new tariffs blasts China for retaliating against earlier measures and warns that any further defiance will lead to the USA levying tariffs on virtually all Chinese imports. “So we charged 25 percent on $50 billion worth of merchandise tariffs coming in”.

If Trump ultimately enforces another round of tariffs against China, practically every Chinese good imported to the United States would be hit by higher tariffs.

The new round of tariffs by Beijing will affect over 5,000 U.S. goods, ranging from meat, chemicals, nuts, alcoholic drinks, clothes, machinery, furniture and automobile parts.

This week Trump said he would press ahead with 10 percent levies on $200 billion of imports – on top of $50 billion already targeted – prompting Beijing to target another $60 billion of USA goods with 5 to 10 percent taxes. While the US has yet to move forward with the additional $267 billion in tariffs does not mean it won’t, stay tuned.

Coca Cola has announced plans to raise prices, citing the cost of raw materials and packaging, though the impact on consumers is hard to gauge. The U.S.’ average applied MFN rate was 3.4% in 2017, and in general the Trump administration has accused China of being a protectionist economy.

Washington and Beijing have been engaging in a trade war for the past few months, initially slapping 25 per cent tariffs on Dollars 50 billion of each other’s goods, leading to the straining of ties between the world’s two largest economies. Trump previously vowed to immediately retaliate with further tariffs on around $267 billion of Chinese imports if Beijing introduces tariffs in response to the latest measure.

Walmart Inc has issued a warning in a letter to U.S. Trade Representative Robert Lighthizer that it may have to raise prices due to tariffs on Chinese imports, CNN Money reported.

But Bradley’s firm, Jammy Inc., is considering bringing extra goods into the US from China before the tariffs more than double in January, he said.

While both the Chinese and USA measures are set to go into effect Monday, Trump previously noted that the initial 10 percent tariffs would rise to 25 percent on January 1, 2019.

With an annual decline in the share of foreign trade in the whole Chinese economy, China is consolidating the fundamental role that domestic consumption plays in its growth.

Ma also said on Thursday that people should make preparations for 20 years of China-U.S. trade dispute.

In the past week the slow dribble of tariffs and counter-tariffs has rapidly grown into a full-fledged confrontation between the world’s two greatest economic powers. In retaliation, Beijing has announced plans to hit USA goods, ranging from wheat to textiles, with 5 percent to 10 percent tariffs.

Meanwhile, China foreign ministry spokesman Geng Shuang has accused the United States of bringing “new uncertainty” to trade talks between the world’s two largest economies.

The American Chamber of Commerce in China warned Tuesday that Washington is underestimating Beijing’s determination to fight back. “As we head into the 2018 harvest season for corn and soybeans out here in Iowa, this escalation of the trade conflict couldn’t have come at a worse time”, says Iowa Ag Secretary Mike Naig.

His remarks gave a lift to the yuan, which has lost about 9 percent of its value since mid-April amid the ongoing trade war. Given that the Trump administration regards China as its “chief strategic competitor”, the United States could possibly impose some conditions that could foil China’s long-term development plans.

Chinese firms with factories in the United States would also face higher costs as they ship US -assembled products back home. In its negotiation with Mexico and Canada on the North American Free Trade Agreement, the Trump administration forced Mexico into submission and grant concessions to the United States, but it failed to pressure Canada into making similar concessions.

Trump believes that his tearing up of the global trade rulebook is long overdue.