U.S. and China Expand Trade War as Beijing Matches Trump’s Tariffs

Employees at a manufacturing plant in McKeesport, Pa., earlier this year. China said it will hit back by imposing its own tariffs on United States goods.

WASHINGTON — The Trump administration on Friday escalated a trade war between the world’s two largest economies, moving ahead with tariffs on $50 billion of Chinese goods and provoking an immediate tit-for-tat response from Beijing.

The president is battling on a global front, taking aim at allies and adversaries alike. The United States has levied global tariffs on metal imports that include those from Europe, Canada and Mexico, while threatening to tear up the North American Free Trade Agreement.

These countries are fighting back, drawing up retaliatory measures that go after products in Mr. Trump’s political base. China’s response was swift on Friday, focusing on $50 billion worth of American goods including beef, poultry, tobacco and cars.

The trade actions could ripple through the global economy, fracturing supply chains and costing jobs at American companies that will be forced to absorb higher prices. Although the United States economy is especially strong, the tariffs are expected to drive up prices for American consumers as well as for businesses that depend on China for parts.

Things could get worse if the United States and China ratchet up their actions. Mr. Trump has already promised more tariffs in response to China’s retaliation. China, in turn, is likely to back away from an agreement to buy $70 billion worth of American agricultural and energy products — a deal that was conditional on the United States lifting its threat of tariffs.

“China’s proportionate and targeted tariffs on U.S. imports are meant to send a strong signal that it will not capitulate to U.S. demands,” said Eswar Prasad, a professor of international trade at Cornell University. “It will be challenging for both sides to find a way to de-escalate these tensions.”



How China Became Trump’s Trade Nemesis

China’s explosive rise was a shock to the global trading system. For decades, Western economies like the United States have struggled with the growth of this economic powerhouse.

“If you look at what’s happening with trade in China, it hasn’t been fair for many, many years.” When President Trump rails against China, he says things like, “Our country is being taken advantage of,” or, “We lost years ago by presidents and others allowing this to happen.” He’s probably referring to the past four decades, when China has grown faster than any major economy in history and gone from a poor, developing country to an economic powerhouse that is challenging America’s spot at the top of the international food chain. “Its emergence as a global power was so sharp and so extreme, faster than the world can handle, in some ways faster than China can handle.” The U.S. and other Western nations kick-started much of China’s rise by opening up trade. What they haven’t figured out is how to get this fundamentally different economic system to play by free market rules. A pivotal moment came in 2001 after 15 years of negotiations. China joined the World Trade Organization, which sets the rules for free and fair trade between member countries. “All of the countries that were in the club at the time put enormous demands on China for what they needed to do.” The Chinese committed to sharply lower tariffs and reduced some of the government’s role in how business gets done. But they argued then, as they still do now, that China is a developing country and so should be held to less stringent free trade standards. The hope was that these first steps would lead to even more sweeping changes. “Why did we assume that? The experience of communism was through the lens of the Soviet Union and its satellite states, which was ultimately not a success. And so the presumption was, China’s going to want to become like us, more market oriented.” “After China joined the W.T.O. in 2001, you saw this enormous surge of Chinese exports to everywhere in the world, and to the United States in particular.” “They were kind of an elephant hiding behind mice with respect to other countries in global trade negotiations at the time.” The U.S. and other countries complained that China was not opening its markets enough, and keeping the value of its currency artificially low to make Chinese exports more attractive. “China has been making great strides using tools that are really not acceptable under the global trade system.” China has continued to operate as a centrally planned economy. The government owns, influences or subsidizes major industries, giving them an artificial competitive edge. There are heavy restrictions on foreign investment, and foreign companies are pressured to share their technologies. “China has become more market oriented, but dating back to probably 2007, 2008, I think it was recognized that China wasn’t on the path to become more like us. And so then countries began to think about, well, what do we do instead?” “Some view the rise of Asia-Pacific with suspicion and fear. America doesn’t.” Enter the Trans-Pacific Partnership, initiated by Bush, signed by Obama. “When implemented, It won’t just boost trade and support jobs in our 12 countries. It will help set stronger rules for trade across the Asia-Pacific.” Put less politely, It was also supposed to be a bulwark to China’s growing economic power. “The idea was that China would want to join this great trading pact, and so they would have this incentive to reform their economy.” “This is the one that President Trump ripped up on his third day in office.” “The first one is withdrawal of the United States from the Trans-Pacific Partnership.” “I had seen the erosion of popular and congressional support for trade for many years. But I’d never seen anything like Donald Trump.” “Our founding fathers understood trade much better than our current politicians, believe me.” Trade is generally accepted by economists as win-win for countries on the whole. But Trump says that China is winning and the U.S. is losing. “He and people in his administration argue that past approaches to dealing with China haven’t worked. It’s not actually that profitable to negotiate with them. We need to focus on this much bigger trade measure, and then we can really hit them with a very aggressive, forceful action.” “He seems intent on generating a moment of crisis.” “We put a $50 billion tariff on, then we put a $100 billion tariff on. And you know at a certain point, they run out of bullets.” But dynamics have changed. Today, China sees its economy as strong enough to withstand almost anything the U.S. can throw at it.

Video player loading
China’s explosive rise was a shock to the global trading system. For decades, Western economies like the United States have struggled with the growth of this economic powerhouse.CreditCredit...Johannes Eisele/Agence France-Presse — Getty Images

The penalties make good on a campaign promise by Mr. Trump to crack down on Chinese trade practices that he says have cost American jobs. On Friday, Mr. Trump said in a statement that trade between the countries had been “very unfair, for a very long time.”

Mr. Trump added, “These tariffs are essential to preventing further unfair transfers of American technology and intellectual property to China, which will protect American jobs.”

But the White House has lately vacillated between taking a tough stance on Chinese trade practices and declaring that the trade war was “on hold.”

In recent weeks, the administration had tried to defuse tensions with China ahead of a summit meeting with the North Korean leader. Mr. Trump extended a lifeline to the Chinese telecommunications company, ZTE, at the request of President Xi Jinping.

Some advisers, including the treasury secretary, Steven Mnuchin, had feared the economic consequences of a trade war and pushed for a negotiated solution instead. The latest action appears to be a victory for the more hard-line faction of the Trump administration, including the president’s trade advisers, Robert E. Lighthizer and Peter Navarro, who have pushed for a protectionist approach.

“This is not about a policy,” said Mickey Kantor, the former commerce secretary and a chief trade negotiator for the Clinton administration. “This is not about asserting U.S. leadership. It’s about the president having an impulse that if he does this, he will strengthen his base, send a signal to China, and be able to say he’s been strong and tough.”

Tariffs of 25 percent on roughly $34 billion of Chinese products — drawn from a list that the administration published in April that has since been refined — will go into effect on July 6, the office of the United States trade representative said. The administration is also proposing tariffs on roughly $16 billion of new products, which it said would undergo further review, including public hearings.

In total, the tariffs will fall on 1,102 categories of Chinese goods, including nuclear reactors, aircraft engine parts, bulldozers, ball bearings, motorcycles and industrial and agricultural machinery. The list generally focuses on industrial sectors that relate to the country’s Made in China 2025 plan for dominating high-tech industries, like aerospace, automobiles, information technology and robotics, the administration said.

The revised list dropped some products purchased directly by American consumers, including flat-screen televisions and printer accessories, while adding semiconductors, machinery and plastics, according to an analysis by Chad Bown, a senior fellow at the Peterson Institute for International Economics.

In a call with reporters Friday, a senior official said the administration would soon roll out a process for companies to apply for exclusions to the tariffs for products they cannot get from another source.

China said it would hit back with additional tariffs of 25 percent on about $50 billion of American-made products, the country’s Commerce Ministry said in a release. These will also come in two rounds, with penalties on about $34 billion of goods, including agricultural products, automobiles and seafood, scheduled to take effect the same day as the United States tariffs. Tariffs on another $16 billion worth of American goods, including medical equipment, chemical products and energy products, will be announced later, the ministry said.

The ministry said in a separate statement Friday that all other recent trade terms negotiated by the United States and China would also be declared invalid.

Tensions could escalate further in the coming weeks. The White House is formulating a plan for restricting Chinese investments in the United States and putting stricter limitations on the types of advanced technology that can be exported to the country. It has said those restrictions will go into effect shortly after they are announced by June 30.

The White House says its measures are necessary to reset the trade relationship with China, a country Trump administration officials accuse of manipulating economic rules and costing millions of American jobs.

Video player loading
The Trump administration announced Friday morning that it is moving ahead with imposing tariffs on $50 billion of Chinese goods. China said it would retaliate with its own tariffs on American products. The Times’s trade reporter, Ana Swanson, was live on Facebook explaining what this means for U.S.-China relations and potential next steps from both parties.

The moves could damp economic growth that has been stoked by the administration’s tax cuts — though the overall effects are likely to be limited because of the small size of the tariffs relative to the American economy. But in a few industries that are heavily affected, the pain could be substantial. Economists say the tariffs will drive up prices for American consumers purchasing products at retail stores as well as for businesses that depend on China for parts used to make other goods in the United States.

Goldman Sachs economists said Friday that the initial tariffs on $34 billion of products would have a minimal effect on growth and inflation, in part because it was concentrated on industrial rather than consumer goods. But they cautioned that the president’s moves raised the odds that other measures, including more tariffs from the United States and China and restrictions on investment, would follow.

In another analysis, the Tax Foundation, a conservative nonprofit organization, found that tariffs on China and steel and aluminum would have a minimal impact on growth and wages, but that it could lower American employment by more than 45,000 full-time jobs in the long run.

“Imposing tariffs places the cost of China’s unfair trade practices squarely on the shoulders of American consumers, manufacturers, farmers and ranchers,” said Thomas J. Donohue, the president of the United States Chamber of Commerce. “This is not the right approach.”

The National Retail Federation, which represents grocers, chain restaurants and other stores, said the tariffs would not combat China’s abusive trade practices, but only “strain the budgets of working families by raising consumer prices.”

But the tariffs received commendation from others, including lawmakers across the political spectrum who have urged the president to remain tough on China. Senator Marco Rubio, Republican of Florida, called the announcement an “excellent move,” while Senator Chuck Schumer of New York, the Democratic leader, said the tariffs were “right on target.”

“China is our real trade enemy, and their theft of intellectual property and their refusal to let our companies compete fairly threatens millions of future American jobs,” Mr. Schumer said.

In Other News

fake money

Keywords clouds text link http://alonhatro.com

 máy sấy   thịt bò mỹ  thành lập doanh nghiệp
Visunhomegương trang trí  nội thất  cửa kính cường lực   lắp camera Song Phát thiết kế nhà 

Our PBN System:  thiết kế nhà xưởng thiết kế nội thất thiết kế nhà tem chống giả  https://thegioiapple.net/ https://24hstore.vn/

aviatorsgame.com ban nhạcconfirmationbiased.com 
mariankihogo.com  ốp lưngGiường ngủ triệu gia  Ku bet ku casino

https://maysayhaitan.com/  https://dovevn.com/ buy fake money https://sgnexpress.vn/ máy sấy buồn sấy lạnh

mặt nạ  mặt nạ ngủ  Mặt nạ môi mặt nạ bùn mặt nạ kem mặt nạ bột mặt nạ tẩy tế bào chết  mặt nạ đất sét mặt nạ giấy mặt nạ dưỡng mặt nạ đắp mặt  mặt nạ trị mụn
mặt nạ tế bào gốc mặt nạ trị nám tem chống giả

https://galaxymedia.vn/  công ty tổ chức sự kiện tổ chức sự kiện
Ku bet ku casino
Sâm tươi hàn quốc trần thạch cao trần thạch cao đẹp

suất ăn công nghiệpcung cấp suất ăn công nghiệp


© 2020 US News. All Rights Reserved.