Running Out of Tariff Options, China Takes Aim at American Companies

  • Running Out of Tariff Options, China Takes Aim at American Companies

Running Out of Tariff Options, China Takes Aim at American Companies

"Even if all of the tariffs threatened by Trump on autos and China are imposed, those would amount to, at most, 0.8 percent of GDP, which would cause barely a ripple in growth, inflation or employment numbers", said Mr. Scott, senior economist at the think tank.

Stocks in Europe rose earlier as prospects for U.S.

U.S. President Donald Trump said last week that in addition to preparing tariffs on the further $200 billion worth of goods, he had tariffs on an additional $267 billion worth of goods ready "on short notice if I want".

The two governments have imposed 25 percent tariffs on $50 billion of each other's goods.

The Trump administration has invited Chinese officials to hold a new round of trade talks, top White House economic adviser Larry Kudlow said Wednesday.

"American companies are suffering both from China's retaliatory tariffs, and - ironically - from US tariffs created to harm the Chinese economy", the two chambers said in a statement.

The negative impact of the tariffs on USA firms has been "clear and far-reaching", according to a joint survey by AmCham China and AmCham Shanghai.

In addition to tariffs on $200 billion of Chinese goods, Donald Trump said that he wants to impose tariffs on all Chinese imports to United States i.e. additional $267 billion of Chinese products. American officials also worry they might erode US industrial leadership.

The U.S. -China Business Council (USCBC), a nonpartisan non-profit representing around 200 American companies, told Observer that, in recent weeks, the council has been hearing from U.S. companies about delays and challenges getting licensing approvals in China.

Half the respondents reported they had endured more inspections, delayed customs clearance and other forms of heightened regulatory scrutiny.

News of the invite comes as it emerged Thursday that U.S. firms in China are beginning to feel the pinch of tariffs already imposed on the Asian giant.

The chairman of the American Chamber of Commerce in China warned the Trump administration might be underestimating China's resolve to fight back.

"Tariffs are already negatively impacting U.S. companies and the imposition of a proposed $200 billion tranche will bring a lot more pain", Eric Zheng, chairman of the American Chamber of Commerce in Shanghai, said Thursday in a statement.

His comment tempered cautious optimism among investors over the US government's proposal for another round of talks with Beijing.

The two chambers of commerce on Thursday urged the United States and Chinese governments to resume negotiations.

In the ongoing trade dispute between the USA and China, perhaps no companies are more affected than American automakers that are manufacturing their cars in China. The move comes just as Bloomberg reports the White House is proposing a new round of trade talks with China, after the previous four attempts faltered.

The Trump administration is preparing to activate tariffs on US$200 billion worth of Chinese goods, hitting a broad array of internet technology products and consumer goods from handbags to bicycles to furniture.