US Targets China's Manufacturing In First Shots Of Possible Trade War

Trump approves plan to impose steep tariffs on Chinese goods

Trump approves plan to impose steep tariffs on Chinese goods

Shares in USA steel stocks fell on Friday as investors anxious about escalating global trade tensions after President Donald Trump announced hefty tariffs on China.

The ministry says it's also scrapping deals to buy more American farm goods and other exports - steps that were meant to help ease a dispute over China's trade surplus and China's technology policy.

The decision has been made in line with relevant stipulations of the Foreign Trade Law of China and the Regulations of the People's Republic of China on Import and Export Duties, as well as the fundamental principles of worldwide laws, said the statement.

Such statements make clear that trade war, far from being the mere product of President Donald Trump's personal proclivities, is being embraced as a legitimate policy tool by both parties, arising from the deepening crisis of the global capitalist world order.

In its latest move, the White House on Friday announced stiff 25 percent tariffs on Chinese imports, sparking immediate retaliation from Beijing.

Trump raised the prospect of even further escalation.

Washington and Beijing appeared increasingly headed toward a trade war after several rounds of negotiations failed to resolve US complaints over Chinese industrial policy, market access and a $375 billion trade gap. Mnuchin subsequently declared the trade war "on hold".

Additional tariffs for 545 items worth about 34 billion US dollars, including agricultural products, vehicles and aquatic products, will be effective from July 6, 2018, according to a statement of the commission.

Beijing appeared to be trying to minimize the impact on its own economy by picking USA products that can be replaced by imports from other suppliers such as Brazil or Australia.

A second round of tariffs, to be imposed on an unspecified date, on 114 items worth $16 billion will mostly hit chemicals, medical equipment and energy products. It said a decision would be announced later.

"There is no connection between the products targeted by the USA and the tariffs Beijing plans to impose on exported American seafood", said NFI President John Connelly.

Trump's tariffs did gain some support from an unlikely source, U.S. Senate Democratic leader Charles Schumer, who called them "right on target". Other companies say the approval process for licenses has slowed down.

Speaking to French news agency AFP, a European Commission source said that member states have "unanimously supported the commission's plan for the adoption of rebalancing measures on the USA tariffs".

Companies also are watching the fate of ZTE Corp., a Chinese maker of telecoms gear that ran afoul of USA regulators after it violated restrictions on exports of American technology to Iran and North Korea.

The Chinese announcement is the latest volley in a trade dispute between China and the US that has been escalating for months. The agreement allows Washington to impose an additional $400 million fine or other penalties if ZTE violates the deal.

It's a quick response from the Beijing government to President Donald Trump's tariff increase on Chinese goods. Foreign companies complain Beijing subsidizes fledgling Chinese developers and shields them from competition in violation of its free-trade commitments.

In May, tensions eased temporarily after Chinese negotiators agreed to buy more American farm goods, natural gas and other products.

China has said that it would respond with their own retaliatory tariffs on Dollars 50 billion of USA exports like cars, planes or soybeans.

The White House said it would consult on tariffs on the other $16bn of products, and would apply these later. The Chinese government warned after another round of talks June 3 that it would discard those deals if the tariffs went ahead.

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