Published: Wed, July 11, 2018
Markets | By Otis Pena

Trump says tariffs to kick in against China

Trump says tariffs to kick in against China

U.S. tariffs on $34bn (£25.7bn) of Chinese goods have come into effect, signalling the start of a trade war between the world's two largest economies.

After months of threats between the two countries, Friday's tariffs are the first to actually go into effect, said North Dakota Trade Office Executive Director Simon Wilson.

The United States slapped a 25 percent tax on $34 billion worth of Chinese imports starting Friday, and China is retaliating with taxes on an equal amount of US products, including soybeans, pork and electric cars.

Earlier, Chinese Foreign Ministry spokesman Lu Kang said China was ready to act, though he did not confirm the start date for Chinese tariffs. Hu gave no details, but the Communist Party newspaper People's Daily said the customs agency was carrying out a plan announced last month to impose 25 per cent tariffs on a $34 billion list of American goods including soybeans, pork and electric cars.

Economists have warned escalating trade frictions could throttle global growth and strike at the heart of the world trading system, causing economic shockwaves and potentially disrupting years of global growth.

Among other energy products, China noticeably spared USA liquefied natural gas (LNG) exports from potential import tariffs, but in doing so, it has preserved a potential weapon should the trade war with Washington deepen.

The vessel, Peak Pegasus, carrying 70,000 tonnes of the USA oilseed for state grain trader Sinograin, was due to arrive in the port of Dalian at 5:00 p.m. (0900 GMT) on Friday, just hours after the duties went into effect.

One proposal has been for China and the European Union to launch joint action against the U.S. at the World Trade Organisation. It's the first time the U.S. has imposed tariffs aimed just at Chinese goods and follows months of accusations that Beijing stole American intellectual property and unfairly swelled America's trade deficit.

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Meghan paired the look with Paul Andrew heels in black suede, diamond earrings from Birks, and a sleek, center-parted bun. The Duke and Duchess of Sussex began their first official global visit together when they arrived in Ireland on Tuesday.

Trump repeatedly has slammed what he describes as Beijing's underhanded economic treatment of the United States. The first phase of that will affect $34 billion worth of goods. The loss was devastating: AMSC's stock shed $1 billion in value, and the company cut 700 jobs, more than half its workforce. Sinovel has agreed to pay AMSC a total of $52.5 million in restitution.

A solid pickup in hiring by US employers last month also helped keep investors in a buying mood.

A ship hauls containers at a container port in Qingdao in eastern China's Shandong province Friday, July 6, 2018.

China has sought the moral high ground during the increasingly bitter build up to the trade war by positioning itself as a champion of free trade but state media has now ramped up the rhetoric against the US President. With the value-added tax applied on top of the tariff, total Chinese taxes on US pork will be 78 percent.

Investors fretted over the tariffs, and Asian and stocks edged down on Thursday as fears are growing over the consequences for global trade.

- The Latest on the trade dispute between the United States and China as they impose new tariffs. "I will try my best to support domestic products". Beijing said it had no choice but to respond in kind, but was yet to outline the full extent of any retaliatory measures.

China has threatened to respond with tariffs on hundreds of USA goods, including top exports such as soybeans, sorghum, and cotton, threatening U.S farmers in states that backed Trump in the 2016 US election, such as Texas and Iowa.

Economists have for months warned of the potential damage to the USA and global economies from aggressive trade policies and protectionism, which would raise prices and upend global supply chains.

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