China plans tariffs after latest U.S. trade threat

Here's Why Trump Is Hiking Chinese Tariffs To 25%

China's proposal to add a new round of tariffs on $60 billion worth of goods it imports from the us - retaliation for expanding planned tariffs by the Trump administration - is only hitting one commodities sector hard: liquefied natural gas shipments. He told trade officials this week to consider raising that to 25 percent.

It was the latest in a series of tariffs, with the first being imposed by Trump back in early February.

"The U.S. gas industry will be much harder hit by this as China imports only a small volume whereas U.S. suppliers see China as a major future market". Our market is stronger than ever, and will go up dramatically when these frightful Trade Deals are successfully renegotiated. Much of the trade war with allies is really about US domestic politics and the upcoming US November midterm elections.

One Mahoning Valley expert said the Chinese tariffs would have a negative impact on businesses in the region.

The president claims his tariffs are "working big time" in helping pay down the debt, reducing taxes and aiding in trade deals. Even more important, bona fide trade wars occur when tariff spats escalate and precipitate currency devaluations.

While the duties don't pose a big threat to American producers or global prices, they may create headaches for traders.

U.S. President Donald Trump has said he is determined to reduce the large U.S. trade deficit with China. Beijing accused the United States of starting a trade war.

The United States alleges that China steals U.S. corporate secrets and wants it to stop doing so, and is also seeking to get Beijing to abandon plans to boost its high-tech industries at America's expense.

But whatever the reason, the longer the trade war continues, the more Trump will find himself in a bind: on one hand he wants lower rates and a weaker dollar, on the other he keeps escalating by enacting ever bigger (and higher) tariffs on China, which are sure to prompt a broad inflationary response in the USA economy as we have already discussed. That escalation is likely to continue into September, when those tariffs are supposed to go into effect.

Unlike China, where trade negotiations are now frozen and no discussions are underway, both Europe and Mexico in recent weeks have been signalling they are amenable to a quick deal with Trump if he will settle for relatively minor concessions.

The highest penalties in today's list would be imposed on honey, vegetables, mushrooms and chemicals, targeting farming and mining areas that supported President Donald Trump in the 2016 election.

Amid the more heated rhetoric, U.S. stocks ended the week up about 0.8 per cent, the fifth straight week of advances.

The auto industry seems to have been the most affected so far, with three major automakers recently warning that changes to trade policies are hurting performance.

Then there is what China says and on Thursday, Beijing urged the United States to "calm down" and return to reason after news that Trump may hike the tariffs from 10% to 25%. "So we'll have a united front against China". The US wants concessions from China that it is not demanding from NAFTA, Europe and other allies. China's trading partners complain those might violate its market-opening pledges by subsidizing or shielding Chinese companies from competition. Kudlow cited state subsidies and forced technology transfers as behaviors that the Trump administration wants China to end.

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