Trump hardens stand on China; doubles down on 'reciprocal tax'

Strengthening Case for Tariffs Trade Deficit Soars to Nine Year High			The Associated Press		by John Carney7 Mar 20180		7 Mar 2018		7 Mar 2018

Strengthening Case for Tariffs Trade Deficit Soars to Nine Year High The Associated Press by John Carney7 Mar 20180 7 Mar 2018 7 Mar 2018

With other countries planning retaliatory measures, the prospect of a global trade war looms large, but Mr. Trump believes it may be good for America.

He said he hoped China and the USA would have "a calm and constructive dialogue as equals". Tariffs would "seriously impact the normal order of global trade", the Commerce Ministry said.

But the European Union talked tough.

South Korea, a key Washington Asian ally, is the third largest steel exporter to the United States, after Canada and Brazil. Other Chinese media have not covered much on U.S. "If China and India are united, one plus one will not equal two but 11".

China, which is believed to be the primary target of Trump's looming trade war, warned that trade wars also "harm the initiator".

He's mistaken. If the trade balance is your religion, free trade ought to be your church. China accounts for only a small fraction of USA steel imports, but its massive industrial expansion has helped create a global glut of steel that has driven down prices.

The penalties should cover steel, coal, agriculture, consumer electronics, recycled aluminium and luxury consumer goods, the statements said. In fact, the US-EU trade DEFICIT is more than the entire volume of trade with India.

When Liu He, a senior Chinese official involved in shaping Beijing's economic policies, visited Washington last week to discuss bilateral trade with U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin and National Economic Council Director Gary Cohn.

Trump's declaration coincided with the signing by 11 countries of a new Trans-Pacific trade pact that the United States withdrew from previous year.

Adding to the tensions over the tariffs, Trump doubled down on China, which he accuses of unfair trade practices. "China does not want a trade war with the United States, but if the US takes actions to hurt China's interests, China will not sit idly by and will take the necessary measures", Zhang said.

February's surplus did edge downwards from the $21.9 billion recorded in January and $25.6 billion from December. "Steel is steel. If you don't have steel, you don't have a country", he said, announcing the decision. The foreign minister said Beijing was committed to peaceful development, and greater cooperation was needed to address issues like trade and North Korea. China, with which the USA runs the biggest deficit, will only be marginally affected.

"During the Pyeongchang Olympics the DPRK (North Korea) did not conduct any nuclear test and the U.S. and ROK (South Korea) suspended joint exercises. proving that China's proposition of suspension for suspension was right for the problem".

Previously, US President Donald Trump had lashed out at India for high import tariff on Harley-Davidson motorcycle, despite New Delhi's slashed customs duty on imported motorcycles from high brands to 50%.

Still, from my vantage, China's reaction to Trump's lurch toward protectionism has been remarkably subdued. Chinese President Xi Jinping "will prioritize domestic economic initiatives he believes are necessary to transition China's economy", Hass said, "even if it comes at the expense of friction with Trump". "There is no case for imposing tariffs on Australian steel", Turnbull told reporters in Sydney.

The surplus in the current account, the broadest measure of the country's earnings from foreign trade and investment, totaled ¥607.4 billion, the ministry said in a preliminary report.

While taxing what are effectively steel off-cuts from the smoky, old Chinese industrial complex could probably be ignored in Beijing, not so an attack on China's vision for a high-tech, high-margin, low-polluting future.

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