How will the US-China trade war impact South Africa?


Earlier this week, Mr Trump threatened to impose 10% duties on an additional $200bn (£150bn) worth of Chinese goods which he said would come into force if China "refuses to change its practices".

"Growing global trade threats also present a challenge to our industry to pursue more growth in more markets".

Peanut butter and bourbon whiskey among products on list.

Reuters reported that Gao Feng, a spokesman for the Chinese Commerce Ministry, said the Trump administration's trade policies will in the end be counterproductive for American interests.

The European Union (EU) on Friday levied tariffs on estimated $3.2 billion worth of American goods, in retaliation for tariffs US President Donald Trump's tariff imposition on imported steel and aluminium.

When a trade war happens, it just doesn't affect the two economies involved but all the economies open to world trade.

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"It is deeply regrettable that the USA has been capricious, escalated the tensions, and provoked a trade war", Gao said.

Although there has been no record of talks between the two countries since a deal to negotiate a reduction in America's trade deficit with China fell apart, some political analysts in the United States believe Trump may pull away from the tariffs before July 6.

After being deferred, the duties on steel and aluminium went ahead on 1 June and affect the EU, Canada, Mexico and other close USA allies.

A trade war would hit US farmers, a vast majority of whom supported Trump in the 2016 election. "In other words, China should focus on its domestic affairs".

India finalized its decision during a week when the global trade war escalated, with the United States enacting $50 billion in tariffs on Chinese goods, and the European Union imposing $3 billion in levies on such products as US -made bourbon, peanut butter and Harley-Davidson motorcycles.

Some Chinese economists have said that while Beijing cannot agree to Trump's excessive demands, some of the issues raised by Washington could be implemented and would, over the longer term, benefit China. "We don't want to do anything that would harm consumers", he said yesterday. "We continue to call on the EU Commission to seek to de-escalate tensions with the USA and Russian Federation to avoid us slipping into a devastating trade war", Mr Lavelle said.