China urges USA to stop provocative trade war rhetoric

Resolving the trade dispute quickly would decrease the likelihood of manufacturing disruptions for upcoming iPhones, iPads, and Macs, most of which will be assembled in Chinese or Taiwanese factories weeks or months before shipping to other countries.

“If the USA side becomes irrational and issues the list, China will have to adopt measures that are comprehensive measures in quantity and quality in order to make strong countermeasures”.

China’s commerce ministry responded on Tuesday by saying Beijing would fight back firmly with “qualitative” and “quantitative” measures if the United States publishes additional tariffs.

Trump, pursuing his “America First” policy, has been insisting that China has been unfairly benefitting from a massive trade imbalance with the U.S., now estimated to be United States dollars 376 billion. At a combined $450bn worth of goods tariffed, the United States will have placed tariffs on all but 10% of the $505bn worth of goods imported from China in 2017.

The U.S. imported $505 billion of goods from China previous year and exported about $130 billion, leaving a 2017 trade deficit of $376 billion, according to U.S. government figures.

Trump had announced a 25 percent tariff on up to $50 billion in Chinese imports. Chinese officials have promised to respond accordingly if Trump continues to ratchet up tensions.

The likelihood of a retaliation from China and a brutal new trade war has business leaders all over the world terrified-especially ones like Cook who depend on China to manufacture a majority of their companies’ goods.

Initially, 545 U.S. products valued at $34 billion will be targeted by China, mimicking the Trump administration’s tariff rollout. “At the president’s direction, USTR is preparing the proposed tariffs to offset China’s action”.

The planned new wave of tariffs would have to go through the same process of public consultation and comment before taking effect. That would leave about $120-billion available for a tariff hike, falling short of Trump’s $200-billion target.

“It’s kind of a lose-lose for both the people in China and the USA soybean industry, and the soybean farmer”, said Bardole.

Retail groups also weighed in.

President Donald Trump announced Monday that he was considering a 10 percent tariff on $200 billion in additional imports from China.

Shi Yinhong, a professor of worldwide relations at Renmin University of China, said that with the world’s two largest economies now embroiled in “a semi economic cold war”, Beijing faced the challenge of getting Trump back to the negotiating table.

“I think that the other side may have underestimated the strong resolve of President Donald J. Trump”, Navarro added.

Tariffs on other USA goods will be announced at a later date, the Xinhua news agency reported. And it says it would impose tariffs on $16 billion more if the United States does so. The first round of penalties announced by both nations is set to take effect July 6. China is following a similar schedule.

China slapped a 25 percent tariff on 545 American imports including agricultural products, seafood, cars and whiskey. Tech companies, too, felt the pinch with Apple down 1.5%.

Earlier this month, the Trump administration gave ZTE a reprieve after the company agree to pay fines, change management and agree to American oversight.