China & US embark on potential trade war

China & US embark on potential trade war

US President Donald Trump stated that he was considering additional tariffs on a further $100 billion in Chinese goods to the $50 billion he had initially proposed on 22 March.

"President Xi and I will always be friends, no matter what happens with our dispute on trade", Mr. Trump tweeted Sunday. China will take down its Trade Barriers because it is the right thing to do.

On Apr. 4, the Dow had opened down almost 500 points after China hit back against the Trump administration's list of about 1,300 China-made items - or $50 billion in goods - on which it would impose an additional 25 percent tariff.

China warned the USA that it would learn a "painful lesson" if it followed through, while users on Chinese social media platform Weibo were quick to show their patriotism by cheering their country on. The recent market declines and volatility have let at least some of the steam off of high USA stock valuations, even though we're still expensive by most metrics. In the case of China's threat, it would cover more than one third of the goods it now buys from the US.

A trade war might be emerging between the USA and China, which threatens to have a monumental impact, not only severely hurting trade profits on both sides, but also destabilising existing foreign policies.

AMP Capital chief economist Shane Oliver has dispelled fears about the seemingly escalating trade dispute between the U.S. and China.

Meanwhile, others feared a trade war could cause massive price spikes on everyday goods, such as iPhones and soy beans.

The proposal would affect more than 10 times as much trade.

Jordan calls for investigation of chemical attack in Syria's Douma
To the moment, there are no reliable reports explaining how the attack took place and how many people have died. The State Department says it is monitoring reports of the possible chemical weapons attack.

Tempting as it might be for the administration to vent its displeasure with China's unfair trade practices, one must hope that it thinks carefully before rushing into a trade war.

Speaking from experience, he talked about the exorbitant costs of medication in China; many patients and their family members seek out relatives living overseas to help them buy medication, particularly cancer treatment drugs.

Mr Oliver added that the reason markets had responded to the trade dispute was in order to "make some allowance for the probability" of a "full-blown trade war".

James Laurenceson, deputy director of the Australia-China Relations Institute at UTS, said the Chinese response - that they would be playing by the World Trade Organisation rules as much as possible - was "a pretty smart one". Unless higher import tariffs somehow increased US savings or reduced USA investment, there is no reason to think that they would help eliminate the trade deficit. Beijing also declared that the current rhetoric made negotiations impossible, even as the White House suggested that the tariff talk was a way to spur China to the bargaining table.

The threat of a trade war between the world's two largest economies has unsettled global markets.

"If you look at President Xi's speech, it was conciliatory and that feels like a de-escalation", Art Hogan, chief market strategist at B. Riley FBR, tells CNBC.

Senior fellow at the Lowy Institute, Richard McGregor, expected the tension to go on for years and couldn't see the conflict being resolved quickly because of declining strategic trust and rising strategic, economic and technological competition between two of the world's largest economies. It does take many months - sometimes years. "That's a possibility", Trump said.

As to the all-important question of the likely costs of a trade war, it is well to recall that from a financial market perspective Trump could not have chosen a worse time for a trade war.

Related News:



Most liked

United Kingdom helped fake Syria gas attack: Russian Federation
Russia , which has stonewalled diplomatic efforts at the UN Security Council, has vehemently denied a chemical attack took place. President Vladimir Putin said on Wednesday that he hoped common sense would prevail and that the situation would stabilise.

Windy and warm with severe storms possible
That will allow our temperatures to rise into the lower 70s, but it will also give the atmosphere an opportunity to recharge. Dryline is moving a little slower than anticipated, so DFW now has a little better chance of seeing some storms this PM/eve.

Driver, the President of Ecuador and marxist Rebels Killed Journalists States
Most of the FARC demobilized previous year , but splinter groups dedicated to drug trafficking have emerged in some regions. He said their captors have 12 hours to demonstrate otherwise before a major military strike will be launched against them.

Former Raiders kicker Sebastian Janikowski signs with Seahawks
He went on to enjoy a memorable 17-year run with the Raiders before missing the 2017 season with a back injury. Seattle also signed former Jaguars kicker Jason Myers, the only other kicker now on their roster, in January.

David Price to start Tuesday for Boston Red Sox
As for Boston's four-game set against the Orioles, Brian Johnson will start in Price's place on Monday, weather permitting. The southpaw will start Tuesday in Los Angeles against the Angels, a day later than he otherwise would have pitched.

Apple details its crackdown on leakers…in a leaked memo
Apple is not alone though as Google, Facebook, and the rest of Silicon Valley all deal with information leaks. This morning, Bloomberg posted the internal memo in full.

Trump discussed with Erdogan the situation in Syria
On March 18, Turkish-backed troops liberated Afrin town center, which had been a major hideout for the YPG/PKK since 2012. Turkish Defense Minister Nurettin Canikli said that both Russian Federation and the USA are on the wrong side in Syria .

Hertfordshire's Lewis Hamilton dominates first Chinese F1 Grand Prix practice
Though it runs in cycles, Formula One has traditionally been dominated by a few teams and drivers. The competition closes this Friday 13 March at 10am.

Tornado Watch In Effect Until 9 PM
Updates will also be posted on Facebook and Twitter for ReadyWisconsin and Instagram. While most were either EFO or EF1, the state did record an EF3 on May 16, 2017.

Senator Cory Booker Grilled Mike Pompeo on His Anti-LGBTQ Views
Jeanne Sheehan, D-N.H., asked Pompeo if he agreed with that description of the root of tensions between Moscow and Washington. In interviews with CNN, Democratic Sens. "While the investigation continues I think that's the best way to approach it".

One Palestinian Killed, Dozens Injured in Clashes on Gaza-Israel Border
The Israeli military said it responded "with riot dispersal means and are firing in accordance with the rules of engagement". Palestinian authorities said one was critically injured after the Israel Defense Force fired on the crowds.

Valerie Plame rips Scooter Libby pardon: It's 'not based on the truth'
In 2007, James Comey was the deputy attorney general, and appointed a special counsel to oversee the FBI investigation into Libby. Plame appeared on the same network Friday to say the pardon was symbolic and had nothing to do with Libby as an individual.

Unnao rape: HC calls for arrest of accused BJP legislator
Sengar and his brother were also accused of brutally assaulting victim's father, who was fighting to get her daughter justice. However, as the murder charge against Atul was added later by the police, the second FIR does not reflect in the CBI's FIR.

Connecticut Substitute Teacher Gets Sacked for Overseeing Student Fight Club
When asked why he thought it was OK to let students fight in his class, Fish said: "I didn't think it was OK". He denied facilitating the fights and said he thought the students were just being "rambunctious".

Horse race bet with William Hill
How to place a bet To place your wager/bet, all you need is to provide the appropriate information to the ticket writer. Simply you just have to pay £1horse bet and you can easily watch the live horse racing broadcast on your device.