Published: Wed, July 11, 2018
Money | By Ralph Mccoy

What Is the Endgame for the Trump Trade Wars?

What Is the Endgame for the Trump Trade Wars?

The previous round of tariffs: The Trump administration last week imposed 25 percent tariffs on $34 million in Chinese goods, prompting Beijing to impose retaliatory tariffs of the same amount on U.S. imports.

World stocks fell and the dollar rose Wednesday after Washington threatened to hammer Beijing with tariffs on a further $200 billion of Chinese imports, ratcheting up the global trade war.

The United States is preparing 10 per cent tariffs on more than 6,000 Chinese products, from air conditioning units and antiques to toilet paper and truffles.

The Trump administration intends to impose a ten percent duty on the products listed, Reuters reported, citing US Trade Representative Robert Lighthizer.

The move would be the latest in the escalating trade skirmish between the world's two biggest economies.

The U.S. imposed an initial round of 25% tariffs, applying to $34 billion in imports, as part of a $50 billion tariff plan. While the tariffs wouldn't go into effect for at least two months, they would be much more aggressive in the range of goods they'd apply to. That prompted fears Beijing, running out of imports for retaliation due to its lopsided trade balance with the USA, might try to disrupt operations of American automakers, retailers and others that see China as a key market.

"China stands in line with the global community on the correct side of history to together protect the rules of the multilateral trade order", foreign ministry spokeswoman Hua said on Wednesday.

Daniel Sankey, a financial policy analyst, suggested that the tariffs harm America's trading with the rest of the globe.

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This most recent maneuver follows a threat President Trump made last month, and comes days after the USA and China imposed tit-for-tat tariffs on more than $30 billion in goods.

Senate Finance Committee Chairman Orrin Hatch called it "reckless", adding that the tariffs were "not a targeted approach".

"Rather than address our legitimate concerns, China has begun to retaliate against USA products", Lighthizer said in a statement. "There is no justification for such action", Lighthizer said.

"Rather than address our legitimate concerns, China has begun to retaliate against USA products ..."

The United States began imposing tariffs on $34 billion in Chinese goods at 12:01 a.m. EDT (0401 GMT) on Friday.

"China has no option but to fight fire with fire". Hours later, China's Commerce Ministry said the US tariffs were "totally unacceptable" and would force the country retaliate, without saying how. High-level talks between the two countries starting in May failed to deliver a breakthrough to head off a trade war.

"American families are the ones being punished".

"This is an appropriate response under the authority of Section 301 to obtain the elimination of China's harmful industrial policies". "In part because they have only limited ammunition and in part because it's still early in the process on the USA side", Kuijs said.

Crude oil prices also sank heavily on concerns that a trade war could sap demand for the commodity that greases the wheels of the global economy - a concern echoed in OPEC's latest monthly report on Wednesday.

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