United States tariffs take effect, China warns of 'counterattack'

United States tariffs take effect, China warns of 'counterattack'

United States tariffs take effect, China warns of 'counterattack'

They kicked in just after midnight ET, which is noon in Beijing.

China's Commerce Ministry said it would be 'forced to make a necessary counterattack.' It gave no immediate details but Beijing earlier released a target list of American goods for retaliation including soybeans, electric cars and whiskey.

The first ever USA tariffs aimed just at China will likely rally Trump's voters who agree with his "America First" argument that Beijing hasn't played fair for years, stealing America's intellectual property and undercutting its manufacturers.

A possible prolonged trade war may also lead to slowdown in global economy, ultimately affecting Bangladesh's export, which is concentrated on single sector -readymade garment items.

How the newly imposed tariffs will ultimately affect USA soybean markets remains uncertain, as exporters scramble to find new ways to funnel their product to China. Tracy Grondine, a spokesperson for the US Apple Association, said China is a market that has "significant growth potential" for US-based apple farmers.

The American Chamber of Commerce in China appealed to both sides to negotiate a settlement. Beijing has announced reforms this year including ending limits on foreign ownership in its auto industry, but none directly addresses complaints that are fueling its conflict with Washington.

Washington imposed 25 percent duties on $34 billion of imports from China, the first in a series of possible increases that President Donald Trump says could affect up to $550 billion of Chinese goods, more than the total amount China exported to the US past year. It said they would damage the global economy unless other countries stop them.

Trump has slapped tariffs on steel and aluminum imports from these countries while a number of them also slapped retaliatory tariffs on U.S. products, including steel and agricultural products, jeans and motorcycle.

With only US$130 billion in United States imports to retaliate against, Beijing has said it will take "qualitative" and "quantitative" measures against the USA, triggering fears it could cripple the operations of U.S. multinationals operating there. "So we have 50 plus 200 plus nearly 300", he said.

Friday's tariffs could just be the opening skirmishes in the war, as Trump has vowed to hit as much as $450 billion in Chinese goods, the vast majority of imports.

Trump has for years slammed what he describes as Beijing's underhanded economic treatment of the United States in terms of trade, with the USA trade deficit in goods with China ballooning to a record $375.2 billion last year.

The impact will become unbearable if the trade war that formally began on Friday lingers and spreads among other countries, they warn. "If America is cheap, they go to America".

"The war was lost, but now we're going to win it because we have all the cards", Trump reiterated to great applause. Friday, Washington time, on $34 billion of annual imports from China.

What is President Trump threatening?

For the time being, analysts say it's hard to see Washington or Beijing backing down in the dispute.

He said exports often consist of pig parts not in demand domestically, such as offal, and that China's huge population and demand for pork represents an opportunity for USA producers.

The initiative of US President Donald Trump to impose 25% duties on imports from China, the total value of which is estimated at $34 bln, came into force on Friday. "What we will likely see happen in the short-term is apples that were destined for export markets will instead overhang the USA market", she said.

So the ongoing trade war is the culmination of Trump's trade protectionism.

Related news