There have been no trade talks between China and the US

Share

On Thursday evening, Trump requested tariffs on another $100 billion worth of Chinese goods, further fuelling the trade war.

Trump said the United States has already lost any trade war, as he defended his proposed tariffs, saying the move might cause "a little pain" but the United States will be better off in the long run.

"I'm not saying there won't be a little pain", Trump said on WABC radio in NY.

"So we may take a hit and you know what, ultimately we're going to be much stronger for it". The Dow rallied 1 percent, the tech-heavy Nasdaq Composite rose half a percent and the S&P 500 added 0.7 percent.

China announced tariffs worth $50 billion on a series of us products including soybeans, whiskey and cars.

As a result, Trump had instructed the Office of the US Trade Representative to consider whether $100bn of extra tariffs could be "appropriate", and if that was the case, which products they should be slapped on.

The US on Tuesday published a list of $50 billion in Chinese exports set to be hit by US tariffs because of Beijing's alleged theft of intellectual property and technology.

Indeed, after Trump's first announcement of steel and aluminium tariffs in early March, US Steel rose 6%, as investors cheered on the prospect that the company would enjoy more market share in the US and higher prices.

He also tweeted Friday morning, "Despite the Aluminum Tariffs, Aluminum prices are DOWN 4%". He tweets, "People are surprised, I'm not!" China responded within hours by announcing $50 billion worth of tariffs on United States goods.

"On Sino-US trade, China has made its position very clear. We do not want to fight, but we are not afraid to fight a trade war". "None of this supports growth and employment".

US Trade Representative Robert Lighthizer branded the latest presidential proposal as "an appropriate response" to China's recent threat of new tariffs.

Any additional tariffs would be subject to a public comment process and would not go into effect until that process is complete.

Vincent Chan, head of China equity research at Credit Suisse, said tariffs - and other restrictions - would dampen the Chinese tech sector's investment in industry and technology, holding back innovation.

Beijing's list of 106 products included the biggest us exports to China, reflecting its intense sensitivity to the dispute over American complaints that it pressures foreign companies to hand over technology.

However, Frankfurt, London and Paris equities languished in negative territory on Friday, as Trump's warning loomed large. But the bellicose rhetoric from the White House represents an escalation in the tense trade standoff. "In the long-run, losses in manufacturing will lead to decrease in tax revenue and eventually affect China's economic growth". "This is business", Navarro said.

Erin Beasley, executive vice president of the Alabama Cattlemen's Association, described China's targeting of USA -produced beef as "unsettling", but added she was not surprised as it is "an inevitable outcome of any trade war".

China's Ministry of Commerce said it would take new comprehensive measures to safeguard the country's interests if the United States stuck to its protectionist behavior.

"In the event of all-out trade war, both may lose all sense of reason, but I do hope it will never happen". "We don't think that makes sense".

China has accused Trump of damaging the global system of trade regulation by taking action under USA law instead of the through the WTO.

"But we have to get this straightened out". And after a meeting with acting US Secretary of State John Sullivan, Chinese Ambassador to the US Cui Tiankai underscored the need to remain in close communication to restore fairness and balance to economic ties. "It's hard to tell the difference between a rhetorical flourish from a president known for bombastic remarks and a meaningful shift in policy". Trump has demanded that China cut the trade gap by $100 billion. Beijing has called on the European Union to help it reject U.S. protectionism and uphold the global trade order.

In 2016, the USA accounted for $22.8 billion in global soybean exports, the most of any country.

Share