Trump’s trade war: what is it and which products are affected?

  • Trump’s trade war: what is it and which products are affected?

Trump’s trade war: what is it and which products are affected?

President Donald Trump, who has boasted that winning a trade war will be easy, said Thursday that he's prepared to impose tariffs on up to $550 billion in Chinese imports - a figure that exceeds the $506 billion in goods that China actually shipped to the United States a year ago.

German Chancellor Angela Merkel and Chinese Prime Minister Li Keqiang are holding talks on closer economic cooperation in Berlin on Monday as the two countries seek a coordinated strategy in response to the United States administration's protectionist agenda.

"Counterstrike is major economies' first reaction to Washington's trade war", it said in its editorial. China said it will immediately put on his own similarly sized tariffs on an unspecified clutch of American goods. He also acknowledged the multi-hundred billion dollar US trade deficit with China.

Additional retaliatory tariffs on US pork by China and Mexico, set to go into effect this week, could cost the USA pork industry about $2 billion annually.

The American Soybean Association (ASA) said in a statement that soybean farmers "rely heavily" on exports to China, and said that they lobbied Trump to reconsider the tariffs.

The Commerce Ministry said Trump "ignited the biggest trade war in economic history".

The Chinese government appeared to be looking towards the longer term as well, unveiling a new tax plan earlier this month that will boost household consumption and ease savings levels, which will help with its economic restructuring but also mitigate effects of a trade war.

Oil prices were supported as larger-than-expected fall in USA stockpiles data from the American Petroleum Institute confounded worries about supply shortage.

While Trump touts announcements of jobs created in steel plants due to the tariffs, manufacturing industries warn that many more jobs will be lost in companies producing autos, auto parts, appliances and other goods that depend on imported components.

China announced a new 25% tariff in response to USA action under Section 301 of the Trade Act of 1974. Mr Trump has indicated he's examining leaving the WTO altogether.

Jean-Yves Le Drian told France's RTL radio the policy could affect global growth and that pressure should be brought on the avoid descending into an all-out trade war.

Last week saw a worsening of the already severe trade conflict between Washington and Beijing, with the U.S. imposing higher tariffs on a wide range of technological goods imported from China.

Beijing will hit back with tariffs initially on almost $30 billion in United States goods, also taking effect Friday, including vehicles and many agricultural and food products, such as soybeans, which will hit USA farmers hard.

Peter Navarro, the White House trade adviser, has said the United States needs to protect its high-tech "crown jewels" from predatory Chinese practices.

The price of USA soybeans has plunged 17 percent over the past month on fears that Chinese tariffs will cut off American farmers from a market that buys about 60 percent of their soybean exports.

The 25% levy came into effect at midnight Washington time.

The Dow Jones Industrial Average rose 99.74 points, or 0.41 percent, to 24,456.48, the S&P 500 gained 23.21 points, or 0.85 percent, to 2,759.82 and the Nasdaq Composite added 101.96 points, or 1.34 percent, to 7,688.39.

Chinese exporters of tools, lighting and appliances say US orders have shrunk as customers wait to see what will happen to prices. "We are un-willing to fight, but in order to safeguard the interests of the country and the people, we have to fight if necessary".

Beijing earlier released a list of American goods targeted for possible tariff hikes including soybeans, electric cars and whiskey.