Published: Thu, April 05, 2018
Medical | By Mark Scott

China imposes 25 percent tariffs on key USA exports

China imposes 25 percent tariffs on key USA exports

Adams, of PNC Financial, said the tariffs would be especially painful for companies in agriculture: machinery makers in the USA would pay more for imported components, and they wouldn't sell as much food in China because their products would be more expensive.

China's commerce ministry announced the new tariffs without specifying the date they will come into effect in response to duties imposed by President Donald Trump on imports from China. China is the biggest buyer of USA soybeans, picking up about a third of the entire US crop.

Trade and business exchanges between South Korea and China turned chilly previous year after South Korea deployed the US -made Terminal High Altitude Area Defence (THAAD) anti-missile system despite vehement objections from Beijing.

US automakers could be forced to rethink future production plans for several vehicles if the tit-for-tat tariff dispute brewing between the United States and China erupts into a full-blown trade war.

Big industrial and technology stocks were hardest hit by the selling.

A list the US issued Tuesday of products subject to tariff hikes included aerospace, telecoms and machinery, striking at high-tech industries seen by China's leaders as the key to its economic future.

American soybean growers would be among the biggest losers if the White House proceeds with its proposed tariffs on China and China retaliates, Rodger said. "I have to say that China was forced to take the countermeasure and it has reacted with restraint", Chinese Vice Commerce Minister Wang Shouwen told a press briefing.

The Trump administration's threats against China, including the two probes, don't lead to tangible action over the rest of 2017 as Trump shows restraint amid a budding relationship with his Chinese counterpart Xi Jinping. Those tariffs covered less than 1 percent of Japanese imports at the time. Business groups say companies feel unwelcome in China's state-dominated economy and are being squeezed out of promising industries.

Chinese policies "coerce American companies into transferring their technology" to Chinese enterprises, said a US Trade Representative statement (USTR).

Beijing's announcement triggered heavy selling in global financial markets, with USA stock futures sliding 1.5% and U.S. soybean futures plunging almost 5% and on track for their biggest fall since July 2016. While industrial and chemical companies are falling sharply, consumer goods makers and some retailers are up. "China's response is a surprise for some people", said Julian Evans-Pritchard, senior China economist at Capital Economics, noting that neither side had yet called for enforcement of the tariffs.

China's tariff list covers aircraft that would likely include older models such as Boeing Co's workhorse 737 narrowbody jet, but not newer models like the 737 MAX or its larger planes. That excludes high-end Boeing Co. jetliners such as the 747 and 777, leaving Beijing high-profile targets for possible future conflicts. U.S. beef, corn and cotton were also on the list.

Christopher Beros, trade director for China and the Pacific Rim at the California Wine Institute, which represented roughly 1,000 California wineries, said the issue was making him nervous.

And the Eurasia Group consulting firm warned in a research note about fear that the dispute "could spiral dangerously out of control, given that this trade action is really less about trade and more about China's rise as a technology leader".

In the US, crude stockpiles unexpectedly fell 3.28 MMbbl last week, the API was said to report. Regulators could withhold licenses or alter other conditions to hamper foreign business activity.

He said: "We have never had an economy like we have right now, and we are going to make it bigger, and better and stronger'".

"Exports account for about 20% of GDP in China, versus only 12% in for the United States", he says.

The technology investigation was launched under a little-used Cold War era law, Section 301 of the U.S. Trade Act of 1974. Technology companies could see some cost increases or supply-chain disruption because there are multiple computer parts and components on this list, Webber said.

While China has largely stopped hacking into US companies to steal intellectual property in accordance with a 2015 Obama-era pact, security experts say Beijing's spies have continued to break into USA networks to advance China's economic and national security ambitions-testing the limits of the deal.

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