Experts from world's leading economies criticize Trump's China tariffs

Glen Norman
July 9, 2018

Some central IL farmers said they are wary about making any big investments in the near future after fears of a trade war with China became reality Friday, with President Donald Trump imposing 25 percent tariffs on $34 billion worth of goods from that country.

China's reciprocal tariffs took an aim at soybeans, which accounted for $14 billion of US exports into the Asian country a year ago, the Wall Street Journal reported. The U.S. exported 30 percent of its overall soybean production to China past year.

China on Friday accused the United States of starting "the biggest trade war in economic history" as the two sides imposed steep new tariffs on tens of billions of dollars of each other's exports.

In addition to Friday's tariffs and in response to China's retaliation in June, Mr Trump has ordered tariffs on $200bn worth of imports and threatened tariffs on another $200bn.

Friday's tariffs could just be the opening skirmishes in the war, as Trump has vowed to hit as much as $450 billion in Chinese goods, the vast majority of imports. Rather, it intends to take the showdown with the an opportunity to speed up its "Made in China 2025" initiative to transform the so-called "world's factory" into a tech-based advanced industrial power. "The countdown is on as to what Trump will do next".

Gerard Bottino/CrowdSpark/NewscomBegun, the trade war has.

Jaime Castaneda, senior vice president of the US Dairy Export Council, said the retaliatory tariffs have been a "one-two punch" that have left the industry "reeling".

He described the USA actions "a violation of world trade rules" and accused Donald Trump of "initiating the largest-scale trade war in economic history".

Foreign companies accounted for $20 billion, or 59%t, of the $34 billion of exports from China that would be subject to new USA tariffs, with US firms accounting for a significant part of that 59 percent, Gao said.

Among the most concerned companies are those in the manufacturing industry, Geehern said.

Even before Friday, the trade dispute between the world's top two economies had rattled markets and prompted warnings from companies of damage to their bottom lines and higher prices for consumers.

Trump's confrontational outlook applies to other trading partners as well as China, said Tai Hui, chief strategist for JP Morgan Asset Management, in a report.

There was no sign of renewed negotiations between U.S. and Chinese officials before Friday, business sources in Washington and Beijing said.

This will be affected by how high individual tariffs are, and also if they are expanded to other countries like Canada, Mexico and the European Union.

USA soybeans, a key flash-point in the worsening trade relations, will see their tariff jumping to 28 per cent of the value, while the soybean duty for some other nations has been lowered to zero recently.

"Imposing 25% tariffs on U.S. whiskeys could put the brakes on an American export success story", Christine LoCascio, senior vice president for worldwide trade at the Council, said in a statement.

The US trade deficit in goods with China stood at a record $375 billion in 2017.

"If we lose that, my son will spend the rest of his lifetime trying to get that back", he said.

"Don't expect the "war" to be out in the open in some imaginary tit-for-tat tariff battlefield".

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