China and the United States engage in "the biggest trade war" in history
Washington | The United States on Friday launched hostilities with China by imposing tariffs on tens of billions of dollars of Chinese products, Beijing immediately retaliating and denouncing "the biggest trade war in economic history."
At midnight, Washington time, came into force punitive tariffs decided by Donald Trump on a total of 34 billion dollars of Chinese imports including automobiles, hard disks or aircraft components.
The Chinese Foreign Ministry said retaliatory measures came into effect "immediately" afterwards. The official China New Agency said that "additional customs duties of 25%" had been imposed on an "equal" amount of US goods.
Beijing had earlier warned that it would impose tariffs on $ 34 billion of US imports, thus giving Washington a blow for one blow.
The Chinese Ministry of Commerce earlier accused the Trump administration earlier of launching "the biggest trade war in economic history to date" and assured that the country would defend its rights with the World Trade Organization ( WTO).
US tariffs hit 25% of 818 Chinese products.
A second batch of taxes on 16 billion imports, which is currently under review by Trade Representative (USTR) Robert Lighthizer, will enter into force soon, said Trump, who referred to a "two weeks" delay.
"Buy Chinese"
In total, $ 50 billion of annual Chinese imports will be affected by US measures to compensate for what the Trump administration considers to be the "theft" of intellectual property and technology by China.
The United States should not stop there since Donald Trump has asked Robert Lighthizer "to identify $ 200 billion of Chinese goods for additional taxes of 10%."
And the US president has said he is willing to tax $ 200 billion of additional goods "if China increases its tariffs again" in reaction.
These measures could therefore bring to 450 billion the value of Chinese products taxed, the vast majority of imports from the Asian giant (505.6 billion dollars in 2017).
Chinese Premier Li Keqiang, who is visiting Bulgaria, warned that "a trade war does not benefit anyone".
In the streets of Beijing, consumers were worried about a possible price increase following taxes on US products. But they said they were supporting China in the opening trade war.
"I'm just here to buy water. But I will do my best to buy Chinese, "told AFP Mr. Yang, a customer of a Beijing supermarket.
What consequences?
This Sino-US confrontation occurs in a context of tense relations between Washington and the rest of the world. Since early 2018, Donald Trump has triggered a trade dispute by imposing tariffs on Canadian, European and Chinese products, deeming international trade unbalanced and to the detriment of the United States.
The majority of experts warn against the potential damage of such a policy, not only to the US economy, but also to the global economy.
US companies said they were already feeling the impact with rising prices. Others have expressed their fears about their market share in China.
These warnings left marble behind Mr. Trump, who swept them Tuesday in a tweet. "The economy is probably doing much better than in the past, before we solve the problem of unfair trade agreements with each country," he said.
The day before, his trade secretary, Wilbur Ross, had said that forecasts for the coming slowdown in US economic growth were "premature and probably inaccurate".
On the Chinese side, a central bank official said that "the trade war will slow GDP growth in China by 0.2 percentage point" in 2018. He however felt that the new US taxes would have a "limited impact". about the Chinese economy.
WHISKEY AND PIG HEADS: THE "MADE IN USA" TARGETED BY CHINA
Pork Heads, Pistachios or Jack Daniel's Whiskey: The list of US products subject to additional Chinese tariffs is long and is expected to open up trade between the world's two largest economies.
According to a list published before the outbreak of hostilities by the Chinese Ministry of Commerce, several crucial US products are targeted such as soy, automobiles, or sorghum. But also sometimes more surprising goods, which will hardly be able to do without the Chinese market and its 1.4 billion consumers.
Heads and feet of pigs
The offal of pigs, shunned by a majority of Americans, sell very well in China: last year they reported $ 251 million.
"The quality of American pig's feet is correct. But it's especially their price that's competitive, "says Zhu, an importer who works for Dongguan Qianteng.
According to him, his company is studying alternative import channels but "the price will be a determining factor".
Pig's feet are often eaten roasted in China.
pistachios
Pistachio, star product of California, is present on the Chinese list with other nuts and fruits "made in USA".
China consumes nearly half of the pistachios exported by the United States, according to the firm specializing in customs statistics Panjiva. In total, $ 175 million worth of pistachios and other American nuts are targeted.
"The Chinese are important buyers of just about every product we sell," Ryan Jacobsen, the executive director of a California farm organization, told local American radio. "If Chinese consumers are not ready to put the difference in terms of price, the losses will be substantial."
Chicken legs
Gelatinous, rich in small bones and low in meat: the chicken legs do not have many amateurs in the United States.
But instead of throwing them in the trash, American producers export them to China, where they are cooked, seasoned and tasted like a delicacy.
"Chicken legs and pork offal can only be sold in a limited number of markets," said Christopher Rogers, an analyst at Panjiva.
New Chinese taxes "will result in lost revenues for American farmers at the margins".
Salmon
US salmon exports to China are on the rise. The most popular species, pink humpback salmon, surged 176% last year, bringing in about $ 171 million.
Whiskey
Every month, an average of five containers loaded with 120 tons of Jack Daniel's whiskey leave the United States for China, according to Panjiva.
In Beijing and Shanghai, customers of trendy bars and nightclubs mainly consume raw brandy, but some mix it with tea or coke.
A Shanghai-based importer, Gotham East, tried to clear a cargo before the fateful date of July 6, but failed to achieve it in time. "We have accumulated setbacks," said one of its officials.
Posted from my blog with SteemPress : https://z22news.com/china-and-the-united-states-engage-in-the-biggest-trade-war-in-history/