Trump team eases trade war worries

Trump team eases trade war worries

However, even during his presidential campaign, Mr. Trump had alleged unfair practices by the U.S.'s trade partners, singling out China in this context and the trade imbalance between the two countries. If the US and China continue to escalate, American consumers, corporations and farmers all stand to lose big.

PublicInvest Research foresees two outcomes from China's proposed imposition of 25% tariffs on U.S. soybean imports.

The value of the US products was virtually identical to the $50 billion in Chinese high-tech products identified for tariffs on a list the Trump administration rolled out late Tuesday.

Three months after taking oath as the president, Trump, who always had a strong opinion on China's trade competition with the United States, started an investigation into steel imports into the US.

The paper touted China's massive, quickly-growing consumer market, after Beijing announced $50 billion in retaliatory duties on us imports, including 25 percent tariffs on airplanes, cars, soybeans and other key agricultural exports.

"Exports to China directly or indirectly supported 1.8 million new USA jobs in 2015", explains the media.

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President Donald Trump and China are on the brink of a trade war - and it seems states which overwhelmingly voted for Trump would bear the brunt of the blow.

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.

"It will probably be a mixture of the three, of course, but overall I would say we will see a decline", he said.

In addition, China is the biggest exporter in the United States.

China could be targeting the region ahead of USA midterm elections in November to weaken Trump's support base, South Korean news agency Yonhap reported Wednesday.

In response, on April 4, China unveiled its own list of USA imports - also worth $50 billion - that would be subject to tariffs.

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USA stock index futures fell in reaction to Trump's latest statement. If implemented, China's retaliatory tariffs, on products such as soybean, whisky, orange juice and cars, would hit the USA where it hurts; 60% of US soybean exports go to China.

He warned in a tweet on Wednesday that the USA acting outside the global trading system will place the already-weakened World Trade Organization under more strain. Is this the start of a trade war between the world's two largest economies? Only about 2.5 percent of all USA imports are affected by the tariffs.

ANALYST'S TAKE: "With the expectation for talks to now take over, it does look like we have a long drawn out process ahead of us".

The additional tariffs initially applied to 128 products but the list has since been expanded to include an additional 106 products.

Therefore, he imposed the tariffs to help the country reduce the deficit.

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If the size and scale of tariffs "expands and becomes quite clearly impactful on GDP growth for 2018 and 2019, it can be called a war", Kamiyama said.

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