China hits back with tariffs, accusing the US of launching the 'largest trade war in history'

Tan KW

Publish date: Fri, 06 Jul 2018, 04:01 PM

(July 6): China implemented retaliatory tariffs on some imports from the U.S. Friday, state media reported, immediately after new U.S. duties had taken effect.

The move signals the start of a full-blown trade war between the world’s two largest economies, after President Donald Trump’s administration had initially made good on threats to impose steep tariffs on Chinese goods.

At midnight Washington time, the U.S. imposed new tariffs on $34 billion of annual imports from China. This prompted Beijing to respond in kind with levy tariffs on 545 items of U.S. imports, including agricultural products, vehicles and aquatic goods — also worth $34 billion, state-run newspaper The China Daily reported Friday.

A spokesperson at China’s Ministry of Commerce said Friday that while the Asian giant had refused to "fire the first shot," it was being forced to respond after the U.S. had "launched the largest trade war in economic history."

“This act is typical trade bullying,” the spokesperson said, before adding: “It seriously jeopardizes the global industrial chain … Hinders the pace of global economic recovery, triggers global market turmoil and will affect more innocent multinational companies, general companies and consumers.”

China's Ministry of Commerce also said it would look to report the U.S. to the World Trade Organization (WTO) on Friday, accusing Washington of breaching international trade laws.

How did we get here?

The Trump administration initiated the dispute in April, announcing the tariffs and accusing China of using "unfair" tactics to build a large trade surplus with the U.S. and expropriating American technology.

The White House has also pressed Congress to tighten rules on Chinese investment in U.S. technology.

Nonetheless, despite the urging of business groups and lawmakers to negotiate a truce, there was little sign Friday that the two sides would reach a compromise anytime soon.

Beijing and Washington have held several rounds of high-level talks since early May, but the Trump administration has said it is considering expanding the list of targeted Chinese imports. Trump said Thursday that another $16 billion of tariffs are expected to go into effect in two weeks, before ratcheting up the stakes to warn that measures totaling $500 billion in Chinese goods could soon come into force.

External observers have widely criticized this approach, saying such protectionist rhetoric undermines free trade policies that have shaped the global exchange of goods in recent decades. - CNBC

Discussions

Be the first to like this. Showing 2 of 2 comments

ks55

US will impose additional tax on 500 billion USD on top of 50 billion that took effect today. Meaning that every single item exported to US will attract additional tax.

Likewise, every single item imported from US will attract additional tax, PLUS qualitative measure including 100% check for health compliance, 100% clearance from foreign ministry in Beijing for mainlander to visit US, curtailment of US brands like Apple i-phone, GM and Ford cars, MBenz and BMW manufactured in US etc etc...

How is our economy affected?

Major export market for Malaysia:-
1. Singapore (14.5%) comprises mainly transshipment to China and US market
2. China (13.5%) mainly intermediate electronic components of MNCs, crude oil and palm oil.
3. US (9.5%)
4. Japan (8%)
5. Hong Kong (5.1%) gateway to China market
6. Indonesia (3.7%)
7. India (3.7%)
8. Australia (3.5%)
9. South Korea (3.1%)

So when gajah sama gajah berjuang, Malaysia mati tengah-tengah.

2018-07-06 17:13

ks55

http://www.worldstopexports.com/malaysias-top-import-partners/

2018-07-06 17:14

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