Published: Sat, July 07, 2018
Markets | By Otis Pena

Charting the US-China trade battle

Charting the US-China trade battle

They kicked in just after midnight ET, which is noon in Beijing.

The trade war may have just started, but China has already been making moves in the soybean world as US shipments originally destined for the nation have been canceled or rerouted.

U.S. officials accuse China of building its emerging industrial dominance by stealing the "crown jewels" of American technological know-how through cyber-theft, forced transfers of intellectual property and state-sponsored corporate acquisitions.

Beijing insists it's the injured party.

"To put it simply", Chinese Commerce Ministry spokesperson Gao Feng said at a news conference Thursday, "the opening fire on the entire world, including itself". It accused the United States of "typical trade bullying". Trump has threatened to target an additional $200 billion worth of Chinese goods. China still has outstanding sales of about 771,000 tons of US soybeans in the 2017-2018 marketing year and 1.39 million tons in the following season, USDA records show.

"One of the big scary unknowns is we don't know how China will react", Mr. Austin Ramirez, Husco International's chief executive, told the paper.

And Beijing's tactics may go beyond tariffs to include arbitrary quarantines and a costly uptick in customs inspections.

Washington increased tariffs at 12:01 a.m. ET on $34 billion United States worth of Chinese imports, a first step in what could become an accelerating series of tariffs. "If this ends at $34 billion, it will have a marginal effect on both economies, but if it escalates to $500 billion like Trump said then it's going to have a big impact for both countries".

Tariffs imposed so far by all sides affect about $60 billion of goods, or 0.3 per cent of world trade, according to Slater.

The Next iPhones Will Come in Too Many Colors
He expects the cheaper $699 LCD iPhone to account for 55 percent of the total sales when the 2018 iPhone series is first launched. The $1000 6.5-inch iPhone will come in a new gold variant, along with the usual black (Space Grey) and white (Silver) finishes.

China's customs agency said Chinese tariffs on USA goods would take effect immediately after the U.S. duties on Chinese goods kicked in, although Beijing has said it will not be the first to pull the trigger.

He argues that China should purchase more American goods, and has blamed trade with Beijing on the loss of American jobs throughout the Rust Belt.

That would bring the total of targeted Chinese goods to potentially $550bn - more than the $506bn in goods that China shipped to the U.S. previous year.

Gov. Rick Scott and other Florida officials have kept a fairly low profile as Trump pursues policies he says will even the playing field for US producers.

"After tariffs are imposed, prices for Chinese made goods will rise and we'll lose our comparative advantage", said a representative for Sanhua Micro-Channel, which makes components for air conditioners in China's eastern Zhejiang province.

And if Trump extends the tariffs to $550 billion in Chinese imports, there's no way consumers could avoid being caught in the crossfire: The taxes would have to hit consumer products like televisions and cellphones.

The influential US Chamber of Commerce urged Trump this week to reconsider his actions, saying the counter-tariffs now affected $75 billion in American exports and endangered US jobs. Trump's minions were not impressed either with New Delhi's projections that it would be buying billions worth of American airplanes, energy, and armaments in the coming decade, which would cumulatively wipe out the current $ 23 billion trade deficit.

For the time being, analysts say it's hard to see Washington or Beijing backing down in the dispute. -Chinese tensions, Zarit said.

The administration is also weighing auto import tariffs and restrictions on Chinese investment in United States technology.

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