World ‘Trade’ War III: Trump Threatens China with $100B Tariff Plan. Markets go crazy? (UPD)
The trade war between China and US has begun as Trump announced a new list of 1,300 Chinese goods worthing $100B that are to be targeted for tariffs, CNN reports.
Read the details on Nexter.org.
Updated April 6 (04:00 EST):
- Trump to impose tariffs worth $100 billion on Chinese exports:
“In light of China’s unfair retaliation, I have instructed the [United States Trade Representative] to consider whether $100 billion of additional tariffs would be appropriate,” stated POTUS.
- This decision drew criticism from the members of his own party and business partners;
- China doesn’t want to get into the war, they stated they “are not afraid of fighting it.”
- Trump stated in his Tweeter that he also didn’t think about “trade war”, however, his actions tell another.
We are not in a trade war with China, that war was lost many years ago by the foolish, or incompetent, people who represented the U.S. Now we have a Trade Deficit of $500 Billion a year, with Intellectual Property Theft of another $300 Billion. We cannot let this continue!
— Donald J. Trump (@realDonaldTrump) April 4, 2018
Trump’s next step
US is to impose 1,300 Chinese exports worth $50 billion to punish China. A 25% tariff would be applied to all the products mentioned in the list.
Tariffs will be related to aerospace, tech, and machinery, medicine and education, steel and aluminum.
The tariffs will go into force after the meeting on May 15.
Evans-Pritchard, Senior China Economist at Capital Economics, hopes the war won’t begin, “It’s more of a game of brinkmanship, making it clear what the cost would be, in the hopes that both sides can come to the agreement and none of these tariffs will come into force.”
25% tariffs on US goods
Beijing announces 25% tariffs on US soybeans, aircraft, and cars, hours after US posted a list of new tariffs mentioned above.
So net net no-one has gained but there will be 25% more tax on USD 100bn of trade. Ball now in your court Mr President. China announces wide-ranging retaliation for US tariffs via @FT
https://t.co/WwbvZ0b1JI— Paul Mortimer-Lee (@MortimerleePaul) April 4, 2018
After the announcing of the new tariffs, US stock market is expected to hit another session low before the market open:
Dow futures now down 600! https://t.co/2xE8dCHekJ pic.twitter.com/BMbnbOQjd0
— Joe Weisenthal (@TheStalwart) April 4, 2018
SEE ALSO: World Trade War III Is Here: China Sets Tariffs on 128 American Goods. What Will Be Trump’s Answer?
Source: Asia Financial Publishing
Earlier, Donald Trump officially announced that he was imposing a 25% fee on steel imports and 10% fee on aluminum.
The new fees temporarily exempted Canada and Mexico, which together with the US are parties to the North American Free Trade Agreement (NAFTA). In addition to these two states, Trump said about the possibility of making an exception for Australia and other countries.
The US decision to impose tariffs on steel and aluminum is severely criticized by the EU and China. They promised to take countermeasures. And they did.
China imposed tariffs on 128 American goods. This step should be seen as a response to the decision of US administration to raise tariffs on imports of steel and aluminum.
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