US$200 billion in Chinese goods officially 'Tariffed!'

US$200 billion in Chinese goods officially 'Tariffed!'

US$200 billion in Chinese goods officially 'Tariffed!'

President Trump announced Monday that he had ordered the imposition of 10 percent tariffs on an additional $200 billion worth of Chinese goods starting next week.

Additionally, Trump said United States will tariff $267bn of additional Chinese imports if Beijing takes retaliatory action against United States farmers or other industries.

USA trade actions against China will not work as China has ample fiscal and monetary policy tools to cope with the impact, a senior securities market official said.

It has signalled it might target products manufactured in China that are critical to the supply chains of USA technology and manufacturing companies; products relatively low in value but not easily or readily available elsewhere.

It will mark a significant escalation in the trade war and China has said it will hit back.

Unlike the $50b in Chinese products that Trump hit in the first tariff wave in July, which fell mainly on industrial goods, Monday's action will affect consumer products such as air conditioners, spark plugs, furniture and lamps.

Market unease over the "trade war" has been good for the Dollar so far, but that is with China having responded only by imposing its own smaller retaliatory tariffs.

Tariffs have put the a very strong bargaining position, with Billions of Dollars, and Jobs, flowing into our Country - and yet cost increases have thus far been nearly unnoticeable.

Trump has threatened to tax all Chinese goods if Beijing does not change its trade practices and has already levied tariffs on steel and aluminum imports from other countries, including Canada, Mexico and the European Union.

Writing in the 1930s, Leon Trotsky explained that the interdependence of every country in the global economy meant that the program of economic nationalism, of the kind now being practised by the Trump administration, was a reactionary "utopia" insofar as it set itself the task of harmonious national economic development on the basis of private property. "I think it's going to work out very well with China", he said.

The United States had proposed the talks, but at the same time moved forward with planning additional tariffs on some $200 billion of Chinese products.

The United States will spare Apple's Watch and other consumer gadgets from the latest round of tariffs on Chinese goods, a senior administration official has said in a last-minute reprieve for the technology industry.

"Consumers not China's will bear the brunt of these tariffs and American farmers and ranchers will see the harmful effects of retaliation worsen". These new tariffs would reportedly take effect "within weeks". Yet despite months of tariff talk, the gap between what the U.S. buys from China and what it sells there continues to widen.

Officials in Beijing have already announced that they will retaliate against the U.S. if the new levies are imposed.

This will cut demand for these products (hurting the Chinese economy), and also probably drive up prices in U.S. shops (hurting Americans).

The tariff duel is causing companies that rely on Chinese factories to rethink their business relationships, said Craig Allen, president of the US-China Business Council.

Trump's tariffs on China raise costs and create uncertainty for companies that have built supply chains that span the Pacific Ocean.

"This backdrop fits with the singles and doubles thesis we laid out Friday, which argues not to get too invested in a single trade idea and to remain nimble", says McCormick. "And it was not under Bush", said Derek Scissors, a China expert at the American Enterprise Institute.

The president early on Monday seemed to undermine any efforts for a negotiated solution, saying tariffs have bolstered the USA bargaining position, while cost increases to consumers have been negligible. The United States, by contrast, has continued to experience robust economic growth, including the lowest unemployment rate since 2000.

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