Trump Tariffs Against China Take Effect

China ‘fully prepared’ for trade war with US

US 'firing at itself' with trade measures: China

China implemented retaliatory tariffs on some imports from the US on Friday, immediately after new USA duties had taken effect.

China says it may hike tariffs on U.S. pork, other goods.

Minutes after the US tariffs went into effect at 12:01 Friday US time (0401 GMT), a spokesperson for China's ministry of commerce said, "China promised not to fire the first shot, but in order to safeguard the country's core interests as well as that of the people, it is forced to fight back", according to Xinhua.

Under the banner of his "America First" policy, Trump has also targeted other traditional trade partners of the United States, such as Canada, the European Union, Japan and Mexico. Chinese companies and investors girded for the worst, while economists cautioned any impact on the economy would be minimal.

China said it would respond with measures of a "corresponding number and quality" if the United States produced a list of products that could be hit.

While Chinese state media have slammed Trump's protectionism and on Friday likened his administration to a "gang of hoodlums", the trade conflict has gained little traction on China's tightly controlled social media, not cracking the 50 top-searched topics on the Twitter-like Weibo platform. "Simply put, the USA is opening fire on the whole world, and also firing at itself".

USA customs officials will begin collecting an additional 25% tariff on imports from China of goods ranging from farming plows to semiconductors and airplane parts.

Atlanta Fed President Raphael Bostic said in June that companies are setting the bar for investing in new projects "quite high".

Chinese stocks actually rose after the announcement, with the benchmark Shanghai Composite Index up almost one per cent and the Shenzhen index climbing more than one per cent.

"The Chinese government's position has been stated many times".

Li further added that he and workers at his factory are "not so worried" because they have a price advantage over competitors.

The US was already undermining the WTO's trade disputes process by stalling on the appointment of new judges, he said.

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And enduring the pinch isn't going to pay off. Protectionism has historically proven to be destructive for the global economy and won't achieve what the Trump administration is trying to accomplish, said Hsu.

"China is a big market for us".

China's plans to impose tariffs on hundreds of U.S. goods target some top USA exports, including soybeans, sorghum and cotton, threatening U.S. farmers in states that backed Trump, such as Texas and Iowa. He told reporters aboard Air Force One on Thursday, "You have another 16 (billion dollars) in two weeks, and then, as you know, we have $200bn in abeyance and then after the $200bn, we have $300bn in abeyance. Ok?"

"One of the big scary unknowns is we don't know how China will react", Mr. Austin Ramirez, Husco International's chief executive, told the paper.

Trump's tariffs are the result of an investigation by the administration into the theft of United States intellectual property by Chinese firms and their government. -China economic relationship had grown "no longer sustainable".

But then wages rise, making exports more expensive, and the country gets stuck in what's known as the "middle income trap".

The US Chamber of Commerce says some states will have billions of dollars worth of exports at risk.

In May, the figure swelled to US$24.6 billion, which was nearly all of China's total surplus of $24.9 billion, compared to the same period previous year. USA soybean farmers have been particularly concerned, and the price of soybeans has plunged 17 percent over the past month on tariff fears.

Substantial they may be, but the average US consumer will likely not see these impacts directly for a little while.

Analysts are also concerned about the impact on others in the supply chain and about an escalation of tensions between the U.S. and China in general.

The new tariffs will bring back a level of American protectionism that has not been seen since 1970 when the average charge stood at 6.5%. "China is never the only side to suffer", Cheng said.

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