US to slap tariffs on extra $200B of Chinese imports

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https://www.postguam.com/the_globe/...cle_f78a9980-84a9-11e8-9ddd-7b5f1437986a.html

WASHINGTON – The Trump administration raised the stakes in its trade war with China on Tuesday, saying it would slap 10 percent tariffs on an extra $200 billion worth of Chinese imports.

The administration released a wide-ranging list of Chinese goods it proposes be hit with tariffs, including hundreds of food products as well as tobacco, coal, chemicals and tires, dog and cat food, and consumer electronics including television components.

“For over a year, the Trump administration has patiently urged China to stop its unfair practices, open its market, and engage in true market competition,” U.S. Trade Representative Robert Lighthizer said in announcing the proposed tariffs.


“Rather than address our legitimate concerns, China has begun to retaliate against U.S. products ... There is no justification for such action,” he said in a statement.

Last week, Washington imposed 25 percent tariffs on $34 billion of Chinese imports, and Beijing responded immediately with matching tariffs on the same amount of U.S. exports to China.

President Donald Trump has said he may ultimately impose tariffs on more than $500 billion worth of Chinese goods – roughly the total amount of U.S. imports from China last year.

Some U.S. business groups and senior lawmakers sharply criticized the latest action on Tuesday, with Senate Finance Committee Chairman Orrin Hatch, a Republican, saying it “appears reckless and is not a targeted approach.”

The U.S. Chamber of Commerce, which has supported Trump’s tax cuts and efforts to reduce regulation of businesses, also criticized the administration’s move.


“Tariffs are taxes, plain and simple. Imposing taxes on another $200 billion worth of products will raise the costs of everyday goods for American families, farmers, ranchers, workers and job creators. It will also result in retaliatory tariffs, further hurting American workers,” a Chamber spokeswoman said.

The Retail Industry Leaders Association, a lobby group representing the largest U.S. retailers, said: “The president has broken his promise to bring ‘maximum pain on China, minimum pain on consumers.’”

“American families are the ones being punished. Consumers, businesses and the American jobs dependent on trade, are left in the crosshairs of an escalating global trade war,” said Hun Quach, the head of international trade policy for the group.

Administration officials said a two-month process would allow the public to comment on the proposed tariffs before the list is finalized.
 

delbruky

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My guess is China-US will reach a compromise by year end.
In my opinion I don't think there will be much of a compromise. Emperor Xin Pig has too much of an Ego, his western democratic advisers and media have propped his ego too much to consider any compromise. The whole idea of Belt Road Initiative is too circumvent the chinese production industry and re employ their people into construction all over their perceived belt at doing that by indebting other sovereign nations. In case a soverign nation defaults on their debt the Chinese would have the right grab their land, hard assets and resettle their people in those lands. This is how invasions happen.
Also, If trade balance compromise starts with US all the other countries will ask for the same. Chinese communist philosophy is not too different from Naxals in that they can't co-exist peacefully. Except India all the Chinese neighbors are dictatorial and that suits them, even Nepal is now communist (who would have thought that? well under Sonia ji's rule any thing could have happened). IN my opinion US china trade war is good for India
 
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In my opinion I don't think there will be much of a compromise. Emperor Xin Pig has too much of an Ego, his western democratic advisers and media have propped his ego too much to consider any compromise. The whole idea of Belt Road Initiative is too circumvent the chinese production industry and re employ their people into construction all over their perceived belt at doing that by indebting other sovereign nations. In case a soverign nation defaults on their debt the Chinese would have the right grab their land, hard assets and resettle their people in those lands. This is how invasions happen.
Also, If trade balance compromise starts with US all the other countries will ask for the same. Chinese communist philosophy is not too different from Naxals in that they can't co-exist peacefully. Except India all the Chinese neighbors are dictatorial and that suits them, even Nepal is now communist (who would have thought that? well under Sonia ji's rule any thing could have happened). IN my opinion US china trade war is good for India
Chinese claim their economy is self sustaining now let's see if it really is??
 

Darth Malgus

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On one hand I want America along with the west to go down and see The east grow again. On the other hand, China fully backs Pakistan and ends up doing stupid shit on the border so I end up getting happy with news like this.
 

ezsasa

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Won’t effect China much , since they have massive forex reserves. Their forex reserves will keep them safe for atleast 2 fiscal years.

They were anyways in the process of changing themselves to a consumption based economy, CCP will just implement their plans faster.

Since CCP controls the internet, chances of nation wide social unrest is minimal.
 
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Won’t effect China much , since they have massive forex reserves. Their forex reserves will keep them safe for atleast 2 fiscal years.

They were anyways in the process of changing themselves to a consumption based economy, CCP will just implement their plans faster.

Since CCP controls the internet, chances of nation wide social unrest is minimal.
Chinese debt is 8 trillion. Even after their reserves how will they pay interest?? US treasury
holdings are worthless.
 

ezsasa

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Chinese debt is 8 trillion. Even after their reserves how will they pay interest?? US treasury
holdings are worthless.
China’s external debt is less than 2 trillion.

I am not saying ripples won’t be felt within China, I am saying they have the resources and capability to survive the storm.
 

jadoogar

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Chinese debt is 8 trillion. Even after their reserves how will they pay interest?? US treasury
holdings are worthless.
Figures of 250%+ of GDP have been calculated for China Internal Debt (Yuan denominated) - the PRC claims a GDP of USD 10 trillion, placing Chinese internal debt at north of $25 trillion.

External debt - I am not sure what the numbers are. China has been trade surplus and also has had a lot of capital inflows. However, they have also had a lot of capital flight so I think that the Chinese external situation is more precarious than widely acknowledged.

China now has draconian capital controls - their rules claims that Chinese can convert to foreign currency USD 50,000 - however their are reports that anything more than $5000 is not being allowed by Chinese banks. By implication they are trying to conserve foreign currency. This does not sound like a country with trillions of freely usable foreign currency reserves.

Ultimately if PRC survives it will be by the US Government bakshish (rescind tariffs) or by Wall Street gifts (push investor money into China by shenanigans like making the Yuan a reserve currency, changing the composition and weightage of, for example, Morgan Stanley Global stock indices to push even more money into Chinese equities, launch in NY mega billion IPOs or follow on offerings of Chinese internet companies, etc etc)
 

Haldiram

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The sanctions have been slapped and China has responded with reciprocal sanctions. News is saying that it will affect agricultural economy in both countries, but China will mostly remain insulated.

Two of India's enemies engaged in a catfight. What could be better than this! It's much better that both of them needle each other instead of needling us.
 

jadoogar

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It is sustained by massive debt spending, we will see how deep Chinese pockets really go.
Well - the PRC buys $130 billion of US goods. So assuming that the PRC also imposes equivalent tariffs on the 130 bn, the net US tariff is on $ 375 billion of PRC goods. At 10% it comes to $37.5 billion. And that is assuming that the whole $500 billion import gets tariffed - not assured or even planned at this point.

I think that the PRC economy can handle a hit of (up to) $37.5 billion. Their trade surplus far exceeds that. Also they can make up that money through IP theft, mercantilism, selling stock in Chinese companies in NY.

But the notional loss of $37.5 billion may make them less generous with the Pakis :scared2:
 

Armand2REP

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Well - the PRC buys $130 billion of US goods. So assuming that the PRC also imposes equivalent tariffs on the 130 bn, the net US tariff is on $ 375 billion of PRC goods. At 10% it comes to $37.5 billion. And that is assuming that the whole $500 billion import gets tariffed - not assured or even planned at this point.

I think that the PRC economy can handle a hit of (up to) $37.5 billion. Their trade surplus far exceeds that. Also they can make up that money through IP theft, mercantilism, selling stock in Chinese companies in NY.

But the notional loss of $37.5 billion may make them less generous with the Pakis :scared2:
It isn't Chinese companies that pay the tariffs, it is US companies buying Chinese products. As the price of those goods increase they will seek other suppliers and Chinese companies will lose business as they will be uncompetitive.
 

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