United States tariff war to adversely affect global trade: China

United States tariff war to adversely affect global trade: China

United States tariff war to adversely affect global trade: China

Investors are trying to gauge the economic risks from Trump's mission to reduce the $552-billion USA trade deficit by imposing tariffs on foreign goods.

These disputes between nations are handled by the World Trade Organisation (WTO), the global organisation that deals with the rules of trade between nations.

Kudlow said on Wednesday that Xi was "holding the game up".

China is the largest importer of soybeans in the worldwide community.

The WTO gives countries broad leeway to determine national security interests.

A number of countries have retaliated with levies on USA goods and some have filed complaints against United States tariffs with the World Trade Organization.

China's other trading partners, including the European Union, while not supporting tariffs, have also criticized Beijing's trade policies.

"Whether we need the multilateral trading system or not".

China can not match this added tariff in direct parallel fashion - Since the US only exports about $130 billion to China per year.

"Unilateralism and trade bullying are unacceptable", Gao said.

As expected, in response to the United States tariffs, China imposed increased duties on USA goods.

U.S. Trade Representative Robert Lighthizer said in a statement that the tariffs are unjustified "under global rules" and "appear to breach each WTO Member's commitments under the WTO Agreement".

President Donald Trump's campaign to slap tariffs on everything from Chinese steel to German cars could set off a shock to business confidence that takes a significant bite out of global output, according to an analysis by the International Monetary Fund.

Some trading partners have already issued public responses to the USA consultations requests.

In a response to the U.S.' challenge, Mexico's Economy Ministry said Monday that the U.S.' tariffs were imposed "unjustifiably" and the Mexican government would stand by its retaliatory measures. "Rather, the solid trading relationship between Mexico and the U.S. has led to an integrated regional market where steel and aluminium products support the region's competitiveness in various diverse strategic sectors, such as automotive, aerospace, electric, and electronic", the statement continued.

Currently China is involved in a total of 57 disputes, either as the complainant or as responder to complaints from other countries. However, the losses for the Chinese seafood industry look to be bigger - if the United States implements the recently announced 10% additional tariffs.

The Commerce Department is investigating whether imports of passenger vehicles, including SUVs, vans and light trucks, imperils USA national security.

That could also backfire by causing an outflow of funds from the country, and because China is no longer merely seeking to profit from cheap exports but wants to move to an economy driven by domestic demand and production of more advanced goods. "Throughout the whole process, it is U.S. that is promise-breaking and making erratic moves that are shutting down the door to negotiations".

"I will continue to push for binding legislation that requires congressional approval of national security-designated tariffs".

"This roaring economy that we worked together to build for American workers and businesses is at risk because of the president's trade policies".

Groceries here are already among the dearest in Europe.

Related news