Published: Fri, June 01, 2018
Worldwide | By Lisa Hogan

China says it's ready to fight back after United States revives tariffs

China says it's ready to fight back after United States revives tariffs

Office of Trade and Manufacturing Policy Director Peter Navarro on the Trump administration's tariffs and trade talks with China.

Then, on Tuesday, the White House abruptly changed its tune.

"The United States will impose a 25 percent tariff on $50 billion of goods imported from China containing industrially significant technology, including those related to the "Made in China 2025" program", the statement said". The group cited research from Iowa State University economist Dermot Hayes, who estimates that USA pork producers have lost $2.2 billion on an annualized basis as a result of events leading up to and following China's 25 percent punitive tariff on pork.

The International Monetary Fund called on China and the United States to settle their trade dispute. It used the threat of increased import levies to kick start negotiations with China on easing the pain for American companies.

Mr. Trump has often talked about challenging what he has described as China's unfair trade practices, but his advisers are deeply divided over the best course for doing so.

William Zarit, chairman of the American Chamber of Commerce in China, said the USA threat of tariffs appeared to have been "somewhat effective".

The American Chamber of Commerce in China has said it believes that threatening tariffs can be a useful tool to force Beijing to make more concessions at the negotiating table.

Nearly immediately, Lighthizer put out a statement warning that major issues between the two sides remain unresolved, and that tariffs, investment restrictions and export regulations remained on the table.

"The second thing is, the president has said we lost the trade war long ago", he said. This was a "win-win" because it would reduce the trade deficit while providing high-quality products that Chinese consumers need, he said.

ZTE said the USA move threatened it with collapse. In particular, China's favoring of its own companies over foreign firms and its handling of intellectual property rights, or lack there of, with companies that do business on the mainland.

As Chinese companies expand overseas, the United States, Europe and other trading partners are pressing Beijing to ease controls that keep their companies out of industries including banking, insurance, telecoms and health care.

While US tariffs would have a direct impact on China's economy, such uncertainty would likely have an even greater indirect impact as it came to affect consumption, investment confidence and financial markets, he explained.

The tariff threat could still disrupt Ross's China talks. "Even a doubling of China's imports from the U.S. over 10 years would reduce the gap by only about $100 billion, compared to 2017 levels".

Trump is under pressure from Congress to stay tough on China, especially Chinese telecoms-equipment maker ZTE Corp.

That plan was met with fierce bipartisan resistance over the weekend.

The meeting held in Washington in May where many matters were discussed on Chinese matters. "Moving forward with tariffs on goods imported from China will harm USA consumers and businesses, and will fail to change China's discriminatory and damaging trade practices".

Like this: