China vows to 'fight back' after USA threaten $200bn tariffs on goods

What Is the Endgame for the Trump Trade Wars?

What Is the Endgame for the Trump Trade Wars?

Chinese tariffs have already taken a toll on US exports such as soybeans, which raises questions about the possible political repercussions President Trump could face from farmers who supported him in the 2016 election.

The Aussie, considered a liquid proxy for China-related trades, fell 0.5 percent against the dollar to $0.7422. Beijing immediately retaliated with similar duties on USA exports.

The Retail Industry Leaders Association said new tariffs on Chinese imports would punish American families by driving up prices.

The first USA tariff list focused on Chinese industrial products, an attempt to reduce the direct impact on American consumers.

Members of Congress are increasingly questioning Mr. Trump's aggressive trade policies, warning that tariffs on imports raise prices for consumers and expose US farmers and manufacturers to retaliation overseas.

Last week, Washington imposed 25 per cent tariffs on $US34 billion of Chinese imports, and Beijing responded immediately with matching tariffs on the same amount of U.S. exports to China.

It also said that China would have to respond to the United States actions. Once China announced their retaliatory tariffs, soybean stock dropped 14 percent in June.

Beijing has said it would hit back against Washington's escalating tariff measures, including through "qualitative measures", a threat that USA businesses in China fear could mean anything from stepped-up inspections to delays in investment approvals and even consumer boycotts.

The latest escalation in the trade dispute sent markets lower. President Trump had warned China that if the country retaliated to those tariffs, he would impose additional ones; China did, quickly adding tariffs to more than 500 different American imports.


Soybeans, crushed to make cooking oil and the protein-rich animal feed ingredient soymeal, were the biggest US agriculture export to China past year at a value of US$12.3 billion, according to the US Department of Agriculture. The administration says its tariffs are created to punish China for what it calls unfair trade practices, theft of intellectual property, and "forced technology transfers".

A Commerce Ministry statement said, "It is totally unacceptable for American side to publish a tariff list in a way that is accelerating and escalating".

The United States is already working on a second wave of tariffs on Chinese goods worth $16 billion.

In financial markets, MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.5 per cent, while the main indexes in Hong Kong and Shanghai fell more than two per cent.

The chairman of the Senate Judiciary Committee appeared on CNN's "New Day" Wednesday morning and told Alysin Camerota that recent Chinese tariffs targeting USA exports of soybeans and corn had a profound effect on his state.

The US Chamber of Commerce has supported Trump's domestic tax cuts and efforts to reduce regulation of businesses, but it has been critical of Trump's aggressive tariff policies.

The US complains that China uses predatory practices in a push to challenge American technological dominance.

Trump's latest move took the wind out of investors' sails largely because the central scenario for many in the markets is that Washington will eventually step back from the escalating row and settle for some sort of compromise.

Head of USA equity strategy at JP Morgan, Dubravko Lakos-Bujas, said: "Despite trade headlines, S&P 500 companies should deliver robust earnings on above-trend revenue growth and sharply higher margins".

Recommended News

  • Kylie Jenner is nearly  one in a billion!

    Kylie Jenner is nearly one in a billion!

    The youngest of the KarJenners, she said she felt out of place trying to carve her own niche away from the show. While Kylie dismissed the idea of selling out, Kris knows you never say never.
    Kepler spacecraft, almost  out of fuel, suspends exoplanet search

    Kepler spacecraft, almost out of fuel, suspends exoplanet search

    This will be possible only after a few weeks, so the last remnants of fuel are saved for the last stage of operation of the probe. The move has been taken in order to prepare the spacecraft to download the data collected in its latest observation campaign.
    Sharif, daughter to return home

    Sharif, daughter to return home

    Political analysts say Nawaz and his daughter will try to win the sympathies that can play a role in the success in the elections. Earlier today, in an audio message Safdar said he would surrender himself to authorities today because "honour demands it".
  • 200,000 sign petition calling for bank holiday if England win World Cup

    200,000 sign petition calling for bank holiday if England win World Cup

    Croatia coach Zlatko Dalic has only one real injury concern heading into Wednesday's World Cup semi-final in Russian Federation . His teammates play at top-drawer clubs.
    UK Government On Verge Of Collapse Days Before Trump's Visit

    UK Government On Verge Of Collapse Days Before Trump's Visit

    To some critics, the abrupt departures reinforce criticism that the government has no idea about how to actually achieve Brexit. Mr Trump insisted he got along "very well" with Mrs May - but he also described Mr Johnson as a "friend of mine".
    Babies given solid food early sleep better, study claims

    Babies given solid food early sleep better, study claims

    If there is any doubt about what's best for your baby, please seek advice from your doctor or health professional'. Babies who sleep more may wind up consuming less breast milk, he added.
  • Gaza blockade: Israel shuts goods crossings to pressure Hamas

    Gaza blockade: Israel shuts goods crossings to pressure Hamas

    Mahmud Abu Ataya, 25, who recently suffered a leg wound east of Gaza City, said: "I am leaving to be cared for overseas ". The crackdown includes the closing of Gaza's lone commercial crossing, at Kerem Shalom, for an indefinite period of time.
    Russell Knox wins Irish Open at Ballyliffin

    Russell Knox wins Irish Open at Ballyliffin

    It also offers some redemption on Irish soil after the 33-year-old finished second to Rory McIlroy at this event in 2016. The New Zealander had that putt for the title but missed on the high side and the pair were left to go back up the last.
    Next Mavic Pro could offer swappable cameras and safer flight

    Next Mavic Pro could offer swappable cameras and safer flight

    So long as the leak is accurate to begin with, the remaining questions mainly revolve around the launch date and price. So the Mavic 2, if it doubles down on pro-level features, could be DJI's way of enticing people to spend more.
  • Airbus tapped to design Fetch Mars rover

    Airbus tapped to design Fetch Mars rover

    Aerospace company Airbus has been awarded a £3.9 million (about $5.2 million, AU$7 million) contract to design a new Mars rover. The Mars Ascent Vehicle will then launch from the surface and put the sample container into orbit about Mars.
    Kate Middleton Caught Prince William Giggling in Church

    Kate Middleton Caught Prince William Giggling in Church

    Football is "most definitely" coming home, the Duke of Sussex has said ahead of Wednesday's historic World Cup semi-final match . Harry and Meghan's engagements will include official meetings with Taoiseach Leo Varadkar and President Michael D Higgins.
    Manchester City close in on £43m move for Napoli’s Jorginho

    Manchester City close in on £43m move for Napoli’s Jorginho

    And Mahrez did not take the rejection well refusing to play or train for some time and even scooped up fines fined for his boycott.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.