United States tariffs make no dent on China exports surge

United States tariffs make no dent on China exports surge

United States tariffs make no dent on China exports surge

So far, China has either imposed or announced tariffs on 110 billion dollars of USA goods.

However, the U.S. imports far more from China than it exports to it, meaning Beijing may at some point need to look for other means of retaliation.

Companies are already adjusting to the new trade barriers, and shifting supply chains away from China. The latest USA list brings the total worth of Chinese goods facing a 25% tariff to $50 billion. Beijing has retaliated against the USA tariffs with higher duties on a similar amount of American goods.

China announced a plan to slap additional tariffs on $16 billion USA goods in retaliation the Commerce Ministry said on Wednesday, 08 July 2018 that government will impose additional import tariffs of 25% on US$16 billion worth of U. The U.S. Trade Representative's Office is looking into the possibility of a ten percent tariff on another $200 billion in Chinese goods.

"This is a very unreasonable practice", the Chinese commerce ministry said of the USA action on Wednesday as it rolled out China's counter-tariffs. "The major concern right now in trade is China", Hogan said.

These commodities, worth a combined $60 billion, are subject to extra tariffs at four different rates from 5% to 25%. They are meant to protect homegrown businesses and put foreign competitors at a disadvantage.

The latest tariff salvos stem from Trump's complaint that China is unfairly acquiring American technology via coercive joint ventures with United States companies, cybertheft and other violations of intellectual property rights.

On Wednesday, official data from China showed USA imports of LNG fell to their lowest level in a year for the month of July, Reuters records showed.

One of the pillars of the U.S. Trade Policy Agenda is a trade policy that supports national security policy.

Exports to the rest of the world might have been boosted by a weaker Chinese currency.

Trump administration efforts to force China into concessions also have been complicated by the falling yuan, which has lost more than 8 per cent of its value against the dollar since April. Economic growth has slowed since regulators tightened controls on bank lending to rein in surging debt.

"The higher-than-expected imports were pushed up by energy prices, which narrowed the trade balance", said Iris Pang, greater China economist at ING Wholesale Banking in Hong Kong. And since 2007, domestic wholesale and retail proceeds have been higher than export earnings, with the gap widening at a slow but steady pace over the past decade.

The politically volatile surplus with the United States expanded by 11 percent to $28 billion.

To compensate for the gap on its tariff list caused by the exclusion of crude oil, China added fish meal, wood waste, paper and paper waste, metal scraps, and various types of bicycles and cars, among other products. Last year's imports from the United States totaled about $130 billion. The outcome of the crisis was a turn by South East Asian nations towards the Chinese economy, on which they have become increasingly dependent.

But beneath the acrimony, two potential paths for China seem to be emerging, according to participants in the trade negotiations and their advisers.

A stalemate appears the most likely endgame, with new USA and Chinese tariffs staying in place for months or even years.

Numerous products are technology-related, reflecting Washington's continued desire for China to make concessions on its Made in China 2025 initiative.

But a "negotiated truce is also possible," as "China now appears willing to discuss changes" to its Made in China 2025 initiative. Although the two sides remain far apart, Beijing has made subtle shifts to a more conciliatory position. Therefore, impending tariff rise on Chinese bulk drugs could generate a surge in Indian bulk drug exports to the US.

The author is a researcher at the International Trade and Economic Cooperation Institute of the Ministry of Commerce.

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