Published: Tue, September 11, 2018
Global Media | By Derrick Guzman

Trump intensifies trade war, threatens duties on nearly all imports from China

Trump intensifies trade war, threatens duties on nearly all imports from China

Trump's suggestion of tariffs is just the latest attack in the trade war between the USA and China, and there is the possibility of a further $267 billion tariff package also being imposed on Chinese goods.

Over the first eight months of the year, China's surplus with its largest export market has risen almost 15 percent, adding to tensions in the trade relationship between the world's two largest economies. "They're taking US$500 billion out a year", he said.

"It is hard to see how tariffs that hurt US companies and USA consumers will advance the Government's objectives with respect to China's technology policies". But Beijing will struggle to keep responding in kind as it imports less than Dollars 200 billion in U.S. goods per year. Beijing says it will retaliate.

Tariffs could be used to shift negative attention away from the Trump administration, according to Height. And I hate to say this but, behind that, there's another US$267 billion ready to go on short notice, if I want.

Nearly 350 individuals from companies, trade associations and other entities testified, with most opposed to the levies.

DATA OUTLOOK: Investors are expecting a string of USA releases on Friday, such as the latest unemployment rate.

As the president readies additional anti-China trade barriers, some economists worry about the economic toll.

Chinese exporters of lower-value goods such as handbags and surgical gloves say US orders have fallen off. Such a step would significantly escalate his trade war with Beijing and would likely increase costs for a broad range of US businesses and consumers. That would give financial markets a chance to digest the politically sensitive data before trading opens Monday.

The following chart shows the combined value of that trade from January 2008 through July 2018, with the counterfactual shown as a projection of the linear trend that was established in the trailing twelve-month average of the monthly data over the period from March 2017 through March 2018. Imports from the United States reached $13.3 billion, a two percent increase from the previous year.

Wang Huiyao, director of the Center for China and Globalization, a Beijing-based think tank, said that even though it is still unclear whether the new tariffs would be set at 10 percent or 25 percent, it would be highly disruptive to the global supply chain and would affect many countries.

In July, exports of goods and services fell 1.0 percent to $211.1 billion. The trade gap with Mexico narrowed 25.3 percent to $5.5 billion while the shortfall with Canada shot up 57.6 percent to $3.1 billion. Germany's DAX fell 0.3 percent to 11,927, after the country's trade surplus dipped to four-year low.

Apple does manufacture Mac Pros here in the United States, but a majority of its products are produced in China.

The National Association of Retailers immediately announced its opposition to the possibility of new tariffs.

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