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Trump Hits China With Tariffs on $200 Billion in Goods, Escalating Trade War

President Trump, emboldened by America's economic strength and China's economic slowdown, escalated his trade war with Beijing on Monday, saying the United States would impose tariffs on $200 billion worth of goods and was prepared to tax all imports.

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Mr. Trump's decision is a significant escalation of an already serious trade dispute -- one with seemingly no end in sight. After months of failed trade talks, top officials from China and the United States were tentatively scheduled to talk later this month in Washington. But it is unclear whether Beijing will agree to come to Washington with the new tariffs set to go into effect.

Meanwhile ...

China to take countermeasure after US imposes new tariffs

China will have to take countermeasures to respond to the US' fresh tariff decision, in a move to safeguard the country's legitimate interests and the global free trade order, the Ministry of Commerce said on Tuesday.

and have followed-up with ....

China Sets Tariffs On $60 Billion In U.S. Goods, Retaliating Against U.S. Duties

Chinese state television on Tuesday reported that the government has decided to impose tariffs of 5 percent to 10 percent on $60 billion worth of U.S. products, starting on Monday. The tariffs will apply to 5,207 items.

also saying

"The Chinese side reiterates that the aim of imposing these tariffs is to prevent trade frictions from escalating and it is a measure of last resort against American unilateralism and trade protectionism," the Chinese state television report said.

According to a White House SpokesIdiot these tariffs will result in "we'll see more production here in the United States."  SpokesIdiot didn't address the fact the US manufacturing networks have been systematically destroyed making it impossible to produce goods now made in the PRC until those networks are replaced.

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre

by ATinNM on Tue Sep 18th, 2018 at 04:42:07 PM EST
[ Parent ]
The USA also needs to reverse the tax incentives that reward manufacturers for 'off-shoring' production. If it is our goal to return manufacturing to the USA we must change all of the perverse incentives we set up at the behest of neo-liberal looters. China needs access to the US market more than we need goods manufactured in China - IF we create domestic sources for that manufacturing. That requires actual planning - currently an ideological taboo.


"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Sep 18th, 2018 at 06:44:16 PM EST
[ Parent ]
It seems to be even worse: some "finished goods" like TV or other electronic devices sold directly to the consumers, are exempted from the tariffs, but the components to assemble such devices are not. As a result, companies doing their final assembly in US plants , like Vizio TV sets, are disadvantaged:

How Trump's tariffs will hurt US tech companies - The Verge

This dynamic is familiar to economists, who see intermediate goods like circuit boards as fundamentally different from consumer goods like laptops. "It is well-known that tariffs on intermediate goods will harm producers of the final goods," says Eric Bond, who studies international trade at Vanderbilt University. "Historically, protectionist countries have taken this into account by putting higher tariffs on producers of final goods to offset the impact of tariffs on intermediate products." So far, the Trump tariffs have ignored that logic, exempting major products to focus on minerals, metals, and unassembled components.
by Bernard on Wed Sep 19th, 2018 at 02:42:49 PM EST
[ Parent ]

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