US tariffs take effect, China warns of 'counterattack'

US tariffs take effect, China warns of 'counterattack'

US tariffs take effect, China warns of 'counterattack'

"With tariffs against China taking effect, American consumers are one step closer to feeling the full effects of a trade war", Matthew Shay, president of the National Retail Federation, said.

China has vowed to respond with retaliatory tariffs but Beijing said yesterday it would wait to see if Trump followed through on his July 6 deadline first.

On Thursday, US President Donald Trump warned that the US may ultimately target over $500 billion worth of Chinese goods.

The Commerce Ministry statement didn't provide details on its retaliation.

"The worldwide financial crisis, which ensured that we now act in the framework of the G-20, would never have been resolved so quickly, despite the pain, if we hadn't cooperated in a multilateral fashion in the spirit of comradeship", Merkel said on Wednesday.

The big question is how far the hostilities between Washington and Beijing will go.

"In a statement released shortly after the midnight ET, China's Ministry of Commerce called the tariffs - which impose a 25% duty on $34 billion worth of Chinese exports to the USA - "typical trade bullying" and warned that retaliation would be swift".

Gao said China's foreign trade was expected to continue on a stable path in the second half of the year, though investors fear a full-blown Sino-American trade war would deal a blow to Chinese exports and its economy.

The Chinese government said that it was "forced to counterattack" against United States punitive tariffs on its imports, which went into effect early on Friday.

A second tranche of 284 goods worth $16 billion is now under review and could be added to the United States list.

A 25% tariff is now being applied to $US34 billion worth of Chinese goods entering the United States, an amount China's government has previously promised to match on USA imports.

U.S. President Donald Trump has threatened to raise duties on up to $450 billion of imports from China. "Simply put, the U.S. is opening fire on the whole world, and also firing at itself".

He warned that the USA tariffs will hurt a lot of foreign companies that export goods from China to the United States.

In May, the figure swelled to US$24.6 billion, which was nearly all of China's total surplus of $24.9 billion, compared to the same period past year. Given the 12-hour time difference, that would have put its implementation ahead of Washington's.

"China, which is in the crosshairs of the Trump administration's racketeering gun sights, has no choice but to fight back". If that were to persist, it could potentially disrupt imports of key products such as pork and soybeans. -China tit-for-tat, as tariffs on soybeans, electric cars, whiskey, livestock and crude oil have been threatened.

Jiang said that they were now making flags for Trump's 2020 campaign.

The two giant economies appear ready to see which side can endure the most pain. Companies want fairer treatment but will be hurt by U.S.

Kennedy say he thinks the Trump administration's enthusiasm for the conflict "will erode as the economic pain and political fallout from a trade war begin to take hold".

"There's a viewpoint that's shared across the government, and certainly at the White House, that there's going to be pain that United States industry is going to have to suffer in order to change China's behavior", Brzytwa said by phone. For example, the USA government wants China to rein in government subsidies for policies like "Made in China 2025", which seeks to pump hundreds of billions of dollars into industries such as robotics, electric cars and computer chips with the aim of becoming a global leader.

"It's still hard for me to believe the Trump administration could develop and negotiate an overarching package with China that genuinely sticks", Kennedy said.

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