Amid Trade War, Donald Trump Says US "Rebuilt" China

Amid Trade War, Donald Trump Says US

Amid Trade War, Donald Trump Says US "Rebuilt" China

China, claiming the United States had "launched a trade war", retaliated nearly immediately, outlining its own tariffs on U.S. goods worth $50 billion.

The US, the world's largest economy, has a trade deficit of $376 billion with China, the world's second largest economy. China doesn't import enough goods from the match the scale of Trump's proposal but could adopt other methods.

Analysts warned that the risks are growing of an increasingly damaging clash that will ripple around the globe.

China's foreign ministry also warned the US was initiating a trade war. "While there is in principle still room for negotiation, attitudes seem to be hardening".

Even if the amount subject to tariffs is raised to USD150bn, our rough calculations suggest it would not reduce global GDP by more than 0.2%.

Canada has pledged $16.6 billion in countermeasures to respond to us tariffs on Canadian steel and aluminum.

Another 280 or so still need to undergo a public comment period, and will take effect later, CNN reported.

Trade frictions between the United States and Canada have been particularly strained in recent weeks, with Trump taking umbrage at remarks by Canadian Prime Minister Justin Trudeau that were critical of the heavy US tariffs.

Trump said the tariffs on common items in Canada are "so high" that Canadians buy products, such as shoes, and wear them and "scuff 'em up" to smuggle them across the border. The White House plans to release a report later Tuesday detailing efforts by China to acquire what Navarro called the "crown jewels" of American technology and intellectual property. Weaker Chinese growth will have repercussions for big trading partners, such as the United States and Europe, and for global companies who do business there.

Global stocks dropped Monday on concerns over trade as the US and China scheduled the start of tariffs on each other's goods, and a row over migrants threatened the German government.

Steel stocks turned in some of the market's worst performances on the day, as traders anxious about the potential impact of a trade war between the US and China.

China's commerce ministry said Beijing will fight back with "qualitative" and "quantitative" measures if the United States publishes an additional list of tariffs on Chinese goods.

The United States has now imposed tariffs on up to $450bn in Chinese goods, out of a total of $500bn.

On April 3, the White House released a list of 1,300 Chinese products worth $50 billion that could be hit with potential tariffs.

Initially, 545 United States products valued at $34 billion will be targeted by China, mimicking the Trump administration's tariff rollout. The logistics company's shares were the biggest weight on the Dow Transports .DJT , which fell 1.7 percent. It showed a willingness to do that to South Korean businesses a year ago during a period of tension between the two Asian countries.

"Nothing's happened yet, and soybean prices are over a dollar lower, just from the chatter", said Tim Bardole, Secretary of the Iowa Soybean Association. Let's be clear. It's the most predatory economic government that operates against the rest of the world today. "For China's part, its leaders will be determined not to be seen to back down to foreign pressure".

"By putting the tariffs on, that increases the cost for their processors and livestock industry and in the end their consumers, which isn't good for them", said Bardole.

Related news

[an error occurred while processing the directive]