Offbeat Trump to pull tariff trigger at midnight in trade war escalation

19:18  05 july  2018
19:18  05 july  2018 Source:   bloomberg.com

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President Donald Trump Thursday imposed tariffs on imported steel and aluminum from the European Union, Canada and Mexico, triggering The tariffs – 25 percent on steel and 10 percent on aluminum – will take effect at midnight Thursday, marking a major escalation of the trade war between the

One country will raise tariffs , a type of tax, causing the other to respond, in a tit-for-tat escalation . This can hurt other nations' economies and lead to rising political tensions between them. US President Donald Trump reckons trade wars are "good" and easy.

President Donald Trump is preparing to slap tariffs on Chinese goods just after midnight Friday, the first shot in a trade war between the world’s two biggest economies.

Tariffs on $34 billion of Chinese goods are scheduled to take effect at 12:01 a.m. in Washington, the U.S. Trade Representative confirmed in an email Thursday. The milestone marks a new and damaging phase in a conflict that has roiled markets and cast a shadow over the global growth outlook.

In Beijing, policy makers are digging in for what could be a protracted fight -- one in which they say they won’t be the aggressor. Beijing has said retaliatory tariffs on U.S. goods ranging from soybeans to pork will go into effect immediately after the U.S. acts.

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A former official at the U.S. Treasury department says the current tariff war between the United States and China is a threat to the global supply chain. (April 4) AP.

Whether President Trump has begun a trade war or merely a skirmish will depend on which nations win a reprieve from his tariffs , and which retaliate. “It is clear that we now see a much higher and real risk of triggering an escalation of trade barriers across the globe,” he said.

With further tit-for-tat levies already threatened between the U.S. and China, some investors are concerned this week may mark the start of a trade war that spreads globally. Trump has already imposed tariffs on imported steel, aluminum, solar panels and washing machines.

As the deadline approached with little sign of a last-minute deal, U.S. stocks pared gains. The Standard & Poor’s 500 Index was up 0.3 percent at 11:15 a.m. in New York, after earlier rising as much as 0.6 percent.

The looming tariffs have prompted central bank officials to try to reassure investors. The European Union has taken a firm stance ahead of the escalation, with Bank of England Governor Mark Carney saying that the rise of protectionism will affect trade flows and push up import costs.

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President Trump ordered his chief trade negotiator to consider imposing tariffs on an additional 0 billion of Chinese products Thursday, in a dramatic escalation of his trade war with China. Trump wanted much bigger tariffs on China initially, but the administration pulled back and crafted a list of

Trump to Pull Tariff Trigger at Midnight in Trade - War Escalation July 5, 2018, 11:04 AM EDT. Trump Pressed Aides About Invading Venezuela July 4, 2018, 8:59 PM EDT.

Read more: what you need to know about the trade war

Here’s a run down of the key facts about China’s position in the conflict:

What goods are to be targeted?

On June 15, Trump said the U.S. would begin charging additional duties of 25 percent on $50 billion worth of Chinese imports in response to what he says is theft of American intellectual property. That’s split into two rounds -- $34 billion on Friday and $16 billion later.

China has said it will fight back with “equal scale, equal intensity.”

How will the tariffs be implemented?

Customs services for the U.S. and China will be responsible for collecting the new tariffs as imports pass through the port of entry. When products on the list for extra levies are declared to customs, the importer will pay the additional levies.

Are markets ready?

Chinese stocks have taken a beating in recent weeks, entering a bear market, as concerns about the trade-war have mingled with worries about how an ongoing debt-control campaign will feed through into the outlook for economic growth.

Axios: Draft admin proposal would allow Trump to ignore key WTO principles

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President Donald Trump Thursday imposed tariffs on imported steel and aluminum from the European Union, Canada and Mexico, triggering immediate The tariffs - 25 percent on steel and 10 percent on aluminum - will take effect at midnight Thursday, marking a major escalation of the trade war

President Donald Trump will announce tariffs on Chinese imports on Thursday, a White House official said, in a move aimed at curbing theft of U.S. technology and likely to trigger retaliation from Beijing and stoke fears of a global trade war . The risk of an escalation in which there were a broad-based

People’s Bank of China Party Chief Guo Shuqing sought to calm markets, saying bond market risks are controllable and the economy is capable of bearing the impacts of trade frictions. The economic fundamentals mean a sharp depreciation of the yuan is unlikely, he said in an interview with the Financial News.

U.S. Federal Reserve Chairman Jerome Powell said on June 20 that officials are beginning to hear that companies are postponing investment and hiring due to uncertainty about what comes next. “Changes in trade policy could cause us to have to question the outlook,” he said during a panel talk in Portugal.

U.S. stocks have wobbled on trade frictions, but the S&P 500 Index remains roughly level from the start of the year.

What can the real-world impact be?

The tariffs are already having an effect. As an example, Chinese companies are reselling U.S. soybeans, and Chinese companies are expected to cancel most of the remaining soybeans they have committed to buy from the U.S. in the year ending Aug. 31, once the extra tariffs take effect.

Some American business are bracing for impact. U.S. manufacturers and business groups have said the tariffs could increase their costs and lead to higher prices for consumers.


China vows to fight back as the trade war escalates .
It's now safe to say that a trade war is underway between the United States and China. Following the introduction of reciprocal tariffs on $34 billion of the others imports on Friday, the US, as promised, has announced a new list of 6,000 Chinese goods, totalling $200 billion, that may be hit with additional 10% tariffs by the end of next month.China's Commerce Ministry has vowed to retaliate to the countermove."The Chinese side is shocked by the actions of the US," it said in a statement, according to a translation by Google.

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