Trump Considers $100b More Tariffs on China Goods

Katrina Barker
April 7, 2018

Global stock indexes kept climbing Thursday as investors around the world grew more optimistic that a trade dispute between the USA and China, the two largest economies in the world, will resolve without too much damage.

Said National Retail Federation President and CEO Matthew Shay: "These tit-for-tat trade actions could spell disaster for the US economy and make it harder for Americans across the country to afford everyday products and basic necessities".

But economic analysts said the situation - which some USA news outlets have already branded a "trade war" - could change rapidly, especially given the nations' ongoing war of words.

Trump's new round of tariffs would have similarly negative consequences for the US pharmaceutical industry, which makes heavy use of ingredients produced overseas.

The official stressed that the Chinese authorities are still ready for dialogue and negotiations over balancing trade turnover between the world's two biggest economies. This is not a solicitation of any order to buy or sell any market.

The STOXX Europe index of companies in 17 European countries fell 0.35 percent, with the trade-exposed auto sector the leading sectoral loser, down 1.7 percent. Chinese markets were closed for a holiday. The VIX, a measure of market volatility, spiked 12%.

The tit-for-tat escalation of tariff announcements, which have stirred fears that trade unfolded surprisingly rapidly.

"Fellas, we already lost the trade war".

"We can negotiate between the American and Chinese sides on this", he said. This came after China said on Wednesday that it would impose 25 per cent tariffs on 106 USA products worth US$50 billion, ranging from soya beans to cars to aeroplanes. Beijing fired back hours later by threatening tariffs on $50 billion worth of USA goods, including cars, planes and soybeans.

"Rather than remedy its misconduct, China has chosen to harm our farmers and manufacturers", the Republican president said. Chinese investment in USA bonds would correspondingly fall, but that may not be a big danger - US investors would probably pick up the slack. "And we Chinese people always deliver what we promise". "This is the dumbest possible way to do this", said the lawmaker from the farm-belt state of Nebraska.

China fought back, targeting US fruits, nuts, wine and steel pipes.

FILE PHOTO: Containers are seen at the Yangshan Deep Water Port, part of the Shanghai Free Trade Zone, in Shanghai, China March 14, 2018.

White House chief economic adviser Larry Kudlow talks to reporters outside the White House Friday.

So maybe Trump is right, and that a trade war with China will be "easy to win".

Negative sentiment was also generated by a report from the Labor Department showing United States job growth slowed by much more than anticipated in the month of March.

"If the United States side disregards opposition from China and the worldwide community and insists on carrying out unilateralism and trade protectionism, the Chinese side will follow through, at any costs, till the end", the Ministry of Commerce said in a statement yesterday. The deficit was $375.2 billion in 2017. "They're all freaking out", Uhlenkott says, adding that he and his business partner are looking to develop new markets for the distilleries to target- including Zimbabwe, where China has invested billions in recent years-should China become too expensive to penetrate.

On Thursday, Trump instructed the US Trade Representative to consider imposing $100 billion of additional tariffs in light of China's "unfair" retaliation.

The official Xinhua news agency said late on Wednesday that the USA tariffs proposal would cost the United States "dearly". Cellphones and computers, key portions of these categories, were spared from the initial tariffs list.

So could the USA conceivably force China to make any of these concessions? China responded by indicating it wouldn't back down, saying it would fight back "at any cost", according to a statement from the Commerce Ministry.

Other reports by AllAboutTopnews

Discuss This Article