Trade War With China Could Cost Auto Industry Billions

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Part of Washington's rationale for this is the belief that its tariff tactics will have grueling consequences for the Chinese economy; as such, China would agree to make more concessions - only to play into Washington's hands.

China said Tuesday that it will hit back against President Donald Trump with retaliatory duties of five or 10 percent against another $60 billion worth of American products.

On the ground, unilateral tariff onslaughts have never prevailed in USA history. The Trump administration claims China uses joint venture requirements, foreign investment restrictions and administrative review and licencing processes to require or pressure technology transfer from U.S. companies doing business in China.

The deepening rift between China and the United States has stoked concerns about job losses on both sides of the Pacific as tariffs threaten to erode trade flows and economic growth.

The worsening dispute, Alexander said, is taking the United States into unknown economic territory.

According to the USCBC latest report, Arkansas businesses exported $910 million in goods to China in 2017, ranking only behind Canada at $1.2 billion.

He added: "We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly".

"China has openly stated that they are actively trying to impact and change our election by attacking our farmers, ranchers and industrial workers due to their loyalty to me", Trump said on Twitter.

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If tariffs on the additional $267 billion of Chinese imports are put in place, the total hit from the administration's trade fight with Beijing could slow USA economic growth by a third, to roughly 2 percent, in 2019, Daco estimates.

CNN quoted China's state council saying that the new tariffs would be imposed at rates of 5 per cent or 10 per cent, depending upon the product from the same date. They were among 300 tariffs lines that were removed from a preliminary list of targets for USA duties.

According to the trade group representing U.S. businesses in China, half of the American companies operating in the country are anxious there will be a "strong negative impact" from the recently escalated trade dispute.

Sean O'Scannlain, the chief executive of Fortune Fish & Gourmet in Chicago, said he recently had seven workers package an order for 36,000 pounds of individually wrapped Chinese tilapia for a meal delivery company.

The latest round in the fight came this week when the US firmed up plans to impose levies of 10 percent on $200 billion in Chinese goods. And we will come back with more if they retaliate.

All valid points indeed.

Trump has cautioned the world's second-largest economy to think twice before engaging in a trade war in which, he claims, the USA has "more bullets". There really are those around Trump (and elsewhere in Washington) who are encouraging his obsession with the American trade deficit with China for exactly that reason.

In brief: With the US/China trade war now in full swing, we're starting to see more repercussions. It is now bigger than what it was before the big crisis of 2007-2009.

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