US soybean farmers: Tariffs could result in ‘serious damage’

US soybean farmers: Tariffs could result in ‘serious damage’

The United States and China launched what Beijing called the "biggest trade war in economic history" Friday, imposing tariffs on billions of dollars of each other's goods amid a spiraling dispute over technology.

The administration imposed 25 percent duties on $34 billion of imports from China, the first in a series of potential increases.

Beijing hit back on Friday with tariffs worth $34bn and has said it will match Trump's $50bn threat.

"In effect, the Trump administration is behaving like a gang of hoodlums with its shakedown of other countries, particularly China", the state-run China Daily newspaper said in an English language editorial on Friday.

Beijing accused the United States of starting the "largest trade war in economic history".

The tariffs target Chinese industrial goods, not consumer products, in an attempt to limit the impact on USA households.

Though worldwide demand for US soybeans is unlikely to decline in the near future, said Hurst, a trade war may push China and other soybean-producing countries, such as Brazil, to invest more heavily in soybean production.

The president's tariffs, the PIIE's researchers conclude, are "a prime example of 20th century tools aimed at the knowledge-embodying trade flows of the 21st century". "You tax soybean exports at 25 percent, and you have serious damage to USA farmers". He said China never initiates trade disputes, let alone provoking a trade war.

"We also make flags for Trump for 2020".

The report, which shows that unemployment has dropped, also included some numbers that might not be worth the all-caps tweet, including slowed hiring in small businesses and a lack of qualified applicants in some fields, owing, possibly, to wage stagnation.

For commodities traders, soybeans are the most affected market - China's tariffs are directed against US soybeans. -China tit-for-tat tariff fight is likely to shrink trade volume worldwide, which would weigh on the global economy that has been on a recovery track.

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But if the trade war continues into the spring of 2019, the owners of thousands of smaller farms, many handed down from generation to generation, could face tough decisions, pitting their pocketbooks against the president's policies.

But, the longer the trade war goes on, the more severe the impact could become, the spokesperson said.

While Bank of America Merrill Lynch analysts said the chances of the trade war escalating were "modest", it couldn't rule out "a full-blown, recession-inducing 'trade war'". US President Donald Trump on Thursday upped the ante on his country's largest trading partner, warning the United States may ultimately target more than $500 billion worth of Chinese goods, roughly the total amount of US imports from China a year ago.

The tariffs on US and Chinese goods come after months of posturing by both countries. The Office of U.S. Trade Representative Robert Lighthizer released the list of categories of products affected.

China retaliated by imposing a similar 25% tariff on 545 USA products - including cars, soya beans and lobsters - also worth a total of $34bn.

Since talk of US tariffs started, the New Taiwan dollar fell 1.9 percent, the Central Bank said, adding that robust fundamentals like abundant foreign reserves, healthy balance of payments and almost zero foreign debt put the country in good stead to weather fluctuations in related worldwide capital flows.

Friday saw the Trump administration slap tariffs on a wide range of Chinese imports valued collectively at around $US34b a year.

On the streets of Beijing, there were some concerns that prices would rise due to the tariffs but also a determination to support the Beijing authorities in the trade war.

Similarly, China is placing 25% tariffs on a host of goods including crude oil and soybeans.

"You saw with China, 50 billion dollars - and another 200 billion dollars, frankly, is waiting".

Trump has said the tariffs were imposed to pressure China into abandoning unfair practices like theft of intellectual property.

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