Markets around the world are getting pummelled as Trump's trade war intensifies

Marsha Scott
July 12, 2018

"We can not turn a blind eye to China's mercantilist trade practices, but this action falls short of a strategy that will give the administration negotiating leverage with China while maintaining the long-term health and prosperity of the American economy", Hatch said in a statement.

China imports far less from the USA than the U.S. imports from China.

The Chinese government, however, called it "totally unacceptable" and said it would take unspecified countermeasures. No financial details of the agreement signed Tuesday were announced, but construction is expected to start as soon as official permits come through.

"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.

China gave no details, but it has plenty of options to retaliate that could extend beyond additional tariffs on USA imports.

In his statement, Lighthizer claimed that the United States has specially targeted those Chinese products that "benefit from China's industrial policy and forced technology transfer practices", and China's retaliation - from Washington's perspective - was "without any global legal basis or justification". He is also renegotiating the North American free-trade agreement, demanding Canada and Mexico eliminate trade barriers for the United States while allowing Washington to erect more barriers of its own to Canadian and Mexican firms.

He said Donald Trump has a challenge ahead.

"It is totally unacceptable for the United States to accelerate matters by announcing a (new) tariff list", the Commerce Ministry said in a statement yesterday.

More news: President Donald Trump Announces His Supreme Justice Nominee
More news: Thierry Henry and Eden Hazard console emotional Neymar
More news: Did Maisie Williams just reveal ‘Game of Thrones’ ending?

The country's Commerce Ministry earlier threatened "comprehensive measures", which were feared to include harassing American companies in China.

The policy is a top concern for USA officials. China's yuan meanwhile dropped 0.45 per cent against the dollar to move back towards an 11-month low plumbed last week. China is far more likely just to find other ways to hit back in kind. But China only bought about $135 billion in US goods previous year, meaning it will run out of American products to tax before it matches Trump's latest move. In order to safeguard the core interests of the country and the fundamental interests of the people, the Chinese government will, as always, take the necessary counter-measures.

Tuesday's announcement was met with backlash from some quarters.

Senate Finance Committee chairman Orrin Hatch, a Republican, said the move "appears reckless and is not a targeted approach".

China's Commerce Ministry has said that Beijing has no choice but to fight back after the USA "launched the largest trade war in economic history", accusing Washington of violating the rules of the World Trade Organization (WTO).

"But more tariffs like these will punish America's manufacturing workers - and could undermine our hard-won gains thanks to tax and regulatory reform".

"Pre-tariffs, the private sector was poised to invest $1.34 trillion in energy infrastructure to keep pace with surging production - supporting more than 1 million jobs each year on average through 2035".

Other reports by MaliBehiribAe

Discuss This Article