China tariffs: Losers outnumber winners in this trade war

China tariffs: Losers outnumber winners in this trade war

China tariffs: Losers outnumber winners in this trade war

Nikita Maslennikov, an analyst at the Institute of Contemporary Development (INSOR), told Sputnik that even as the U.S. and China engage in a tit-for-tat tariff exchange, it feels more like an invitation to the negotiating table rather than the beginning of an actual trade war.

"If the USA side disregards opposition from China and the global community and insists on carrying out unilateralism and trade protectionism, the Chinese side will take them on until the end at any cost", the Ministry of Commerce said in a statement on its website.

We can't overstate our concern about what the impact will be of a USA trade war with foreign nations - in particular, with China - on agriculture states like Iowa. Responding to the Trump administration's controversial tariff on steel and aluminium, China has proposed tariffs on 128 USA products worth $3 billion.

The moves follow USA tariffs that were imposed earlier this year on Chinese steel and aluminum, which also prompted retaliatory measures from China.

Trump has previously cited the auto trade as an example of the unbalanced playing field, saying China puts a 25 percent duty on imported USA cars while the US charges 2.5 percent for Chinese vehicles. China wasted no time in firing back with 25-percent tariffs on imports of 106 US products, including soybeans, automobiles, chemicals, and aircraft. "There is the potential of a trade war", said Treasury Secretary Steven Mnuchin.

The real battle will come when America decides not to allow China to dominate the industries of the future by flaunting the rules that have governed the worldwide trading system since the end of World War II.

The Dow Jones Industrial Average ended down almost 575 points, or 2.3 percent, at 23,932.76 after sinking more than three percent earlier. That is likely to cause President Trump political problems in farm states, but it also risks raising food costs within China.

A fundamental principle of trade wars is that there's only one group of beneficiaries, but two groups of victims. We make them worse off if we stand between them and say "thou shalt not".

Asked in an interview with NY station WABC about the effect on United States stock markets, Mr Trump said the market has gone up (since he took office) "so we might lose a little bit of it". It was followed by a memorandum to impose $60 billion in extra tariffs on China over allegations of intellectual property theft. Chinese and US officials haven't held talks "for a period of time" on any economic or trade issues, Gao said.

But top White House economic adviser Larry Kudlow reversed himself and warned that the tariff threat is not a negotiating tactic. "Perhaps there will be some fruitful negotiations", he said. The US has a trade deficit of $375 billion with China and the ongoing trade war would undermine the interests of its farming community, technology companies, automakers, pharmaceuticals and aircraft manufacturers.

Though the USA tariffs target Chinese drug makers, those on the losing side may be American pharmaceutical companies that make generics such as Mylan NV. In a speech at the Economic Club of Chicago on Friday, Fed chair Jerome Powell said it was "too early to say" what the result of a trade war would be on the US economic outlook.

Those tariffs won't even go into effect until after a comment period, setting up a potentially long period of lobbying and negotiation that could rein in their scope or even delay them indefinitely.

"We are exporting out pipes and tubes to the U.S., but we are not dependent on America as we have got other markets, which we are been developing for the last few years".

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