China trade battle kicks off; markets take it in stride

China trade battle kicks off; markets take it in stride

U.S. President Donald Trump has threatened to further escalate the trade conflict between the world's two largest economies with tariffs on as much as $450 billion worth of Chinese goods if China retaliates, as the initial round of tariffs take effect at 12:01 a.m. EDT on Friday.

Trump discussed the trade war Thursday with journalists who flew with him to Montana for a campaign rally.

The total value of the United States tariffs on China amounts to $50bn, though they will come into effect in two tranches, with the first round covering 818 products worth about $34bn having come into force on Friday. As promised, Beijing hastily reiterated with duties on $34 billion worth of US goods.

While market jitters over USA trade policy intensified in recent weeks, Wall Street had a tempered reaction to the rollout of US tariffs on $34 billion in Chinese imports.

German newspaper Handelsblatt reported that a US official has met with German carmakers to discuss impending American tariffs on auto imports from the European Union.

Noting reports that the USA could add a tax on essentially every product shipped from China, Gao said that using the tariff stick to bully on trade runs against the trend of the times.

But others are much broader and more likely to hit a wide range of consumers, such as US tariffs on Chinese steel and aluminum.

As many economists have noted, there are winners and losers in trade wars.

The Labor Department said that USA employers added 213,000 jobs in June.

President Donald Trump on Monday warned the WTO that if the USA isn't treated "properly, we will be doing something".

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Meghan Markle in Dior at Westminster Abbey to celebrate 100 years of the Royal Air Force, July 2018. Meghan replied: "I'll come back and look out for the first female bust".

The European Union says it will soon take action to prevent steel produced for the USA market from flooding into Europe due to tariffs introduced by President Donald Trump.

The back-and-forth trade battle between the world's two largest economies will likely be damaging to the U.S. economy according to trade experts, ths fact was not lost on the Chinese.

As of 12:01 eastern this morning, computers at USA customs should have been reconfigured to apply new tariffs on $34 billion worth of Chinese goods, which include printers, cars and industrial parts.

Washington imposed 25 per cent tariffs on $34 billion worth of Chinese imports, a first step in what could become an accelerating series of tariffs.

Peter Navarro, the White House trade adviser, has said the United States needs to protect its high-tech "crown jewels" from predatory Chinese practices.

The dispute has roiled financial markets including stocks, currencies, and the global trade of commodities from soybeans to coal in recent weeks.

The tit-for-tat trade showdown has already impacted soybeans farmers in the Midwest. "Our position remains consistent and very clear", he added.

In a paper published in May, the Peterson Institute for International Economics researchers described Trump's tariffs as an "own goal" because they fail to target goods made strictly within China, using Chinese materials and labor, because that's really not how the world works anymore. The Shanghai Composite closed 0.5% higher, but ended the week 3.5% lower - its seventh consecutive week of losses.

The Commerce Ministry on Friday criticized Washington for "trade bullying" following the tariff hike that took effect at noon Beijing time in a spiraling dispute over technology policy that companies worry could chill global economic growth. "However, if the United States adopts taxation measures, China will be forced to fight back to defend the core interests of the nation and the interests of the people".

The list avoids direct tariffs on consumer goods such as cellphones and footwear.

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