Trade War with China

[davidau]

Here we go again another round of tariff and of course the counter punch from China It is trade war let it rip
Trump threatens to slap new tariffs on $200 billion in Chinese goods
John Fritze, USA TODAY Published 8:17 p.m. ET June 18, 2018

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President Donald Trump is calling for Russia to be reinstated to the leading group of industrialized nations, now known as the Group of Seven. (June 8) AP

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COMMENTEMAILMORE
WASHINGTON — President Donald Trump on Monday threatened to slap another round of tariffs on $200 billion of Chinese products, the latest move in an escalating trade war with Beijing.

Trump said the new tariffs, which come days after his administration

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, were a response to the retaliatory trade barriers the Chinese government imposed Friday.

Trump said the latest round of tariffs — which he set at 10 percent — will go into effect if Beijing moves forward with its own import restrictions. The administration did not say Monday which products it would target.

“This latest action by China clearly indicates its determination to keep the United States at a permanent and unfair disadvantage,” Trump said in a statement released by the White House on Friday. “This is unacceptable.”

The decision was

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. Trump said in his statement Monday that the U.S. is prepared to pursue tariffs on another $200 billion of goods if China retaliates again.

“The trade relationship between the United States and China must be much more equitable,” Trump said.

On Friday, the Trump administration slapped a 25 percent tariff on $50 billion of Chinese-made products. In all, 818 products representing $34 billion in U.S. imports would fall under the first round of duties. The White House said an additional 284 products were under review.

The announcement Friday drew an immediate response from Beijing, which said it would move forward with its own tariffs. China vowed to place new, 25 percent tariffs on more than 500 U.S. products, including soybeans, electric cars and orange juice.

The trade disputes between China and the U.S. has been escalating for months. In April, China raised import duties on a $3 billion list of U.S. products that include pork and apples. Chinese officials have threatened further retaliation, stoking fears of trade war between the two countries.

come what may, China would not be bullied into submission by an egocentric estate tycoon. China has enough national reserve, backed up with gold [not paper, like US], has over 1 trillion $US in its treasury bond. why US in debt, because it spends like no tomorrow...

 

[Tam]

China and Japan can't sell all of their debt holdings in one go. Doing that would immediately crash the US's debt value seeing as these 2 are among the largest foreign holders of US debts, making so that what they get in return could very well end up less for what they bought for. It's kinda like a share market. The best way forward would be to sell of their holdings piece by piece.
But the simple act of either China and Japan stopping to buy US debt would be enough to send the whole cycle into a tailspin.

With less buyers, and less overall demand, this causes the interest rates for the Treasuries to rise, in order to get more buyers for them. Except that you probably have less Asian and European buyers now.

Which in turn causes interest rates on other things to rise, which raises the cost of business, which therefore raises the cost of living.

And soon you will get a recession.

 

[SteelBird]

Here we go again another round of tariff and of course the counter punch from China It is trade war let it rip
Trump threatens to slap new tariffs on $200 billion in Chinese goods
John Fritze, USA TODAY Published 8:17 p.m. ET June 18, 2018

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Like what I said "when will this end?".

Trump impose tax on 50 billion Chinese goods and China response with equally 50 billion on American goods. Then Trump threatens another 200 billions. If this becomes real and China also response with another 200 billion, then, what's next? Another 500 billions? Oh no! This will never end! If I could, I would frozen the "thread" and ask that two big boys to cool down!

 

[AssassinsMace]

China should go all the way because that's what Trump will do regardless if he destroys the US. Yes I know some people here think that's too harsh. It won't be just Trump after he leaves office if Beijing thinks it'll return to normal afterwards. American politicians will go with what works to get elected. Every President after Trump will do the same thing unless they suffer the consequences. Americans have to find out the sting of the consequences in order for them to think twice.

 

[Tam]

Like what I said "when will this end?".

Trump impose tax on 50 billion Chinese goods and China response with equally 50 billion on American goods. Then Trump threatens another 200 billions. If this becomes real and China also response with another 200 billion, then, what's next? Another 500 billions? Oh no! This will never end! If I could, I would frozen the "thread" and ask that two big boys to cool down!

China has the advantage that it can press, that being this is an election year for the US, and when you can get some serious hurt done, voters will vote with their pockets.

I expect the US going into a recession by 2019-2020.

 

[Deleted member 13312]

China has the advantage that it can press, that being this is an election year for the US, and when you can get some serious hurt done, voters will vote with their pockets.

I expect the US going into a recession by 2019-2020.

Problem is is it the kind of voters that matters or actually cares that is affected ? Cause if we look at the demographic make up the states. It is clear that a clear bias of power is located in the red states (GOP constituents) in the form of electoral votes vs population density. And as far as I can tell the people in these states couldn't care less of what the economy will come to, so long as they can stick it to the democrats and the alleged foreigners that are "stealing their jobs".
The dangerous thing here is that the current Trump administration could very well drag the world into a recession and his voters will still cheer him on. If they are going down, they might as well bring the house down with them.

 

[SilentObserver]

China should go all the way because that's what Trump will do regardless if he destroys the US. Yes I know some people here think that's too harsh. It won't be just Trump after he leaves office if Beijing thinks it'll return to normal afterwards. American politicians will go with what works to get elected. Every President after Trump will do the same thing unless they suffer the consequences. Americans have to find out the sting of the consequences in order for them to think twice.

Call me a pessimist but I think America would eventually have a trade war or limited one with China regardless of who the president is, Trump just made it happen sooner. Hillary's method would have been different with the TTP. This is not about trade deficit, that is a distraction. America would have trade deficit because its economy doesn't produce many of the goods it imports. The imports are labour intensive and relatively low pay, meaning few Americans would be willing to participate. That is unless America uses massive numbers of illegal migrants (legal status commands higher pay), which is unlikely. America is an exporter of high value technology and high value services. "Made in China 2025" seeks to compete against a sizeable portion of America's core competency.

In fact America already placed limited sanctions on China. They don't have access to US supercomputer processors or other high end technology products. Trade war won't likely be that scary since they target specific industrial products not much effect on consumer goods.

 

[AssassinsMace]

Don't anyone think that if China didn't announce retaliatory tariffs to which Trump is threatening the latest $200 billion if China pulls the trigger that this was it and Trump wasn't going to add more tariffs later on when he needs to distract Americans from whatever old or new scandal of his Presidency or personal life that has no connection to China rears its ugly head. Remember how Trump said if China helped on North Korea that he would forget trade disputes?

Trump wants to ignore its closest allies contribution to US economic and military dominance in this world. And that's why the US has trade deficits with most of these countries because they're payments to keep them as allies. You can see how simple it is when China with money diminishes US influence in other countries. Love for Americans is not with a heart. It's with a dollar sign. That's the price Americans pay to be number one. China is on a different footing because trade is the only thing keeping China from violating everything the US doesn't want China to be violating. There will be nothing holding China back. Embargoes are meaningless. Military exports and high technology to enemies will literally have no restrictions for China especially because the US will be doing that next when economic measures don't work. And who's more likely to use their weapons given by the US or China?

And isn't it just a riot when Trump was elected people were bragging that Putin was going to be Trump's lapdog and they were going to gang-up and take down China...? China and Russia will be able to disrupt every US interest around the world.

 

[Jura The idiot]

on top of us.cnn.com is
Trump threatens China with new tariffs on another $200 billion of goods

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President Donald Trump just raised the stakes in the fight with China over trade.
The White House said Monday evening that if China goes through with its promise to retaliate against the US tariffs announced last week, the United States will impose tariffs on an additional $200 billion worth of Chinese goods.


"Further action must be taken to encourage China to change its unfair practices, open its market to United States goods, and accept a more balanced trade relationship with the United States," Trump said in a statement.

The Trump administration said Friday that it

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on $50 billion of Chinese exports. China,

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retaliated almost immediately, outlining its own tariffs on US goods worth $50 billion.

The escalating conflict between the world's two largest economies has

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and

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, which fear disruption to their global supply chains.

The Chinese Commerce Ministry reacted quickly to Trump's announcement, accusing the United States of "extreme pressure and extortionist behavior" and warning it would "strike back hard."

The Trump tariffs, which the US government says are punishment for intellectual property theft, will be enacted in two waves. More than 800 exports, about $34 billion worth, will be subject to tariffs starting July 6. Another 280 or so still need to undergo a public comment period, and will take effect later.

Trump said Monday that China's response "indicates its determination to keep the United States at a permanent and unfair disadvantage." China's tariffs would target agricultural products, cars and seafood, among other items.

"China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology," he said. "Rather than altering those practices, it is now threatening United States companies, workers, and farmers who have done nothing wrong."

He directed Trade Representative Robert Lighthizer to identify $200 billion worth of Chinese goods for additional 10% tariffs, which would be enacted "if China refuses to change its practices, and also if it insists on going forward with the new tariffs that it has recently announced."

The planned new wave of tariffs would have to go through the same process of public consultation and comment before taking effect.

"If the United States loses its senses and comes up with a new list, China will be forced to strike back hard, and launch comprehensive measures that match the US move in quantity and quality," the Chinese Commerce Ministry said in a statement Tuesday.

But Beijing faces challenges in retaliating directly: China ships far more goods to the United States ($505 billion last year, according to US figures) than come back in the opposite direction ($130 billion).

To respond to Trump's threat to impose tariffs on as much as $250 billion worth of Chinese goods, Beijing would have to find other ways to respond.

Analysts say the Chinese government could target trade in services between the two countries rather than physical products. That means things like tourism and education, industries from which the United States benefits a lot more than China does.

Beijing could also seek to make life difficult for big US companies that rely on the Chinese market for a big chunk of their revenue. It showed a willingness to do that to

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last year during a period of tension between the two Asian countries.

Top US brands such as Apple (

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), GM (

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) and Boeing (

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) generate large amounts of sales in China.

In

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earlier this month, Apple CEO Tim Cook said he didn't expect a full-blown trade war to break out and dismissed the notion that iPhones, which are assembled in China, would end up subject to tariffs.

But analysts say it's unclear which government will back down in the confrontation, predicting both economies will be able to withstand the initial waves of tariffs without much impact on overall growth.

"Neither side will be brought to its knees -- which is one reason to think the trade dispute could drag on," research firm Capital Economics said in a note to clients on Friday. "For China's part, its leaders will be determined not to be seen to back down to foreign pressure."

 

[Jura The idiot]

Jun 7, 2018

Today at 3:37 PM
now

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The US &

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have reached an agreement. ZTE will pay a fine in exchange for being able to buy parts from U.S. suppliers again.

[links

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]

and
US Senate votes to reimpose ban on China's ZTE
Updated 2018-06-19 12:34 GMT+8

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The US Senate defied President Donald Trump by voting on Monday to overrule his administration's deal with Chinese telecom firm ZTE and reimpose a ban on selling high-tech chips to the company.

Senators added an amendment targeting ZTE into a sweeping, must-pass national defense spending bill that cleared the chamber on an 85-10 vote.

But before it can become law, the bill must be reconciled with one already passed by the House of Representatives that does not include the amendment. Any compromising measures must then be passed by both chambers and signed into law by Trump.

ZTE’s Hong Kong-listed shares tumbled as much as 24 percent to 10.02 HK dollars, its lowest in nearly two years, while its Shenzhen shares fell by their daily limit of 10 percent.