wnol.info July 16 2018

The US-China trade war is about to get real

July 16 2018, 04:40 | Alonzo Simpson

US President Donald Trump

US President Donald Trump

China has vowed to institute retaliatory tariffs on USA goods in response to Trump's trade policy, raising concerns of a looming global trade war.

Speaking at a weekly news conference, Chinese Commerce Ministry spokesman Gao Feng warned the proposed USA tariffs would hit worldwide supply chains, including foreign companies in the world's second-largest economy.

The following graphic ranks countries by their participation rate in global value chains, defined by the World Trade Organization as the sum of foreign value-added content of a country's exports and value added supplied to other countries' exports.

"All we can do is adjust our supply chain here depending on the size of the price increases".

Gao Han, a salesman at Beijing Chaoxing Seafood Company, which sells USA lobsters, said that his firm was stocking up before the tariffs hit, but that if the issue persisted they'd have to raises prices or shift supply.

China rejected "threats and blackmail" ahead of a threatened US tariff hike, striking a defiant stance Thursday in a dispute companies worry could flare into a full-blown trade war and chill the global economy.

The first round of USA tariffs on $34 billion in Chinese products is scheduled to take effect July 6, and China has pledged to push back with levvies on an equal number of American exports. "Trump himself intervened with a tweet saying, we don't want to lose all of those Chinese jobs", Bremmer said. According to Bloomberg, President Trump will cut as much as half a percentage point from staggering growth levels of around 6.9 percent.

Trump for President, Inc., the committee organizing Trump's reelect run, has publicly committed to buying American, saying that "we put America First and take great pride in selling 100% Made in the U.S. products to our supporters throughout the country".

Beijing will impose duties on almost 30 billion dollars of American products.

Still, a trade war would likely distract from China's efforts to expand its diplomatic, economic and military footprints overseas, notably through Xi's signature "Belt and Road" involving $1 trillion in investments in infrastructure projects across Asia and beyond.

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"We are going to see in nearly all likelihood tariffs on some $34 billion of goods come down from the United States on China on Friday".

Chinese stock fell Wednesday due to fears of a looming trade war.

Travel and Leisure magazine's report on the alert, meanwhile, noted that China has been warning its citizens about gun violence in the USA for years.

"The Chinese government's position has been stated many times".

Wang Shouwen, vice minister of commerce, said at a news conference in Beijing last week that China has not ramped up regulations to deter USA imports.

He emphasised that U.S. tariffs on Chinese exports will hurt both Chinese and foreign firms.

This set off furious negotiations, which eventually resulted in a tentative trade agreement between the Trump administration and Chinese officials.

"If the United States decides to escalate these tensions, everyone is going to get caught up, and it's going to be pain across the board", said Nick Marro, Hong Kong-based analyst at The Economist Intelligence Unit.

There had been hopes that the U.S. and China might step away from the measures but neither side has backed down.

The Washington Post's Yang Liu contributed from Beijing.

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