U.S. tariffs on $34B Chinese imports take effect

U.S. tariffs on $34B Chinese imports take effect

According to the group, if the US government fully implements its threatened tariffs, USA gross domestic product (GDP) may decline by almost 3 billion dollars and lead to the loss of 134,000 American jobs. Many businesses count China as a major export destination, but the retaliatory tariffs placed by the Chinese government on United States products will similarly increase prices in China and hurt sales.

Minutes after the US tariffs went into effect at 12:01 Friday US time (0401 GMT), a spokesperson for China's ministry of commerce said, "China promised not to fire the first shot, but in order to safeguard the country's core interests as well as that of the people, it is forced to fight back", according to Xinhua.

Speaking hours after the tit-for-tat duties went into effect, Chinese Premier Li Keqiang said no one would emerge a victor from a trade war. Requests for comment went unanswered at the U.S. Treasury, USTR and the U.S. Commerce Department. It said American companies want fairer treatment but will be hurt by U.S.

What tariffs are now in effect?

But U.S. stocks edged higher on Thursday, lifted by technology shares, amid hopes that American trade tensions with Europe may ease after German Chancellor Angela Merkel said she would back a reduction of European auto tariffs if Washington abandons its threatened higher vehicle levies.

Still, Chinese investors and companies were anxious.

Most-active soybean futures are trading near a two-year low on the Chicago Board of Trade and the cheap price is attracting other buyers.

The White House previously described the situation as a "trade dispute" that's justified because of China's own aggressive trade practices and alleged theft of American intellectual property - claims Chinese officials have denied.

Gao also said U.S. business interests would suffer from the first set of tariffs, with about US$20 billion of the targeted goods, or 59 per cent, produced by foreign firms, including U.S. ones.

China's tariffs, on the other hand, will hit agricultural products like soybeans and pork.


Economists say that if the back-and-forth stops there, the overall impact on both economies will be minimal even though some industries will suffer.

For instance, China's 25% retaliatory duty on whiskey could harm the USA producers, according to the Distilled Spirits Council.

US manufacturers and business groups have said the tariffs could increase their costs and lead to higher prices for consumers.

That would bring the total of targeted Chinese goods to potentially $550 billion - more than the $506 billion in goods that China actually shipped to the United States past year. Another $16 billion of goods could follow in two weeks, Trump said, before suggesting the final total could eventually reach $550 billion, a figure that exceeds all of China's annual goods exports to the U.S. "So we have 50 plus 200 plus nearly 300".

Trump's tariffs are the result of an investigation by the administration into the theft of U.S. intellectual property by Chinese firms and their government.

Chinese stocks were down by midday on Friday and the yuan was also off against the dollar as USA tariffs on Chinese goods kicked in.

China's economy is no longer as dependent on exports. Domestic consumption now accounts for more than half of the country's GDP. Exports to the U.S. account for only 19% of all of China's exports.

Similarly, China is placing 25% tariffs on a host of goods including crude oil and soybeans.

A model by Pictet Asset Management reckons a 10 per cent tariff on USA trade fully passed on to consumers could tip the global economy into stagflation and knock 2.5 per cent off corporate earnings globally.

Related Articles

  • England goalkeeper Jordan Pickford hits back at critics after penalty heroics

    England goalkeeper Jordan Pickford hits back at critics after penalty heroics

    Kane is the tournament's leading goalscorer with six goals and looks likely to win the Golden Boot in his first ever World Cup . Empoli fan Francesco is a little more pessimistic about England's chances, but has still admired their work so far.
    Micron Rallies as It Says Injunction in China Won't Affect Its Quarter

    Micron Rallies as It Says Injunction in China Won't Affect Its Quarter

    Now, a court in China has ruled in favor of UMC and threatened to stop the import and sale of chips made by Micron . Micron Technology offers Micron-branded products as well as Crucial-branded notebook DRAM modules and SSD.
    Truck driver charged with 29 counts in Humboldt Broncos’ bus crash

    Truck driver charged with 29 counts in Humboldt Broncos’ bus crash

    The crash occurred when a bus carrying the Humboldt Broncos hockey team collided with a semi-trailer in Saskatchewan on 6 April. Saskatchewan Commanding Officer and Assistant Commissioner Curtis Zablocki will attend, as will Supt.
  • 'We Happy Few' Officially Rated by Australian Ratings Board

    'We Happy Few' Officially Rated by Australian Ratings Board

    We Happy Few is a self-described "game of paranoia and survival, in a drugged-out, dystopian English city in 1964". With Kickstarter involved in the game's funding, that would've been a whole mess.
    Ford Ends Cap-and-Trade Carbon Tax Era in Ontario

    Ford Ends Cap-and-Trade Carbon Tax Era in Ontario

    By getting Ontario out of the carbon tax business , Ford claims that taxpayers across the province will breathe a sigh of relief. To be exact, Ford promises to cut gas costs by 10 cents a litre.
    Syrians 'displaced by fighting in the southwest'

    Syrians 'displaced by fighting in the southwest'

    Despite Washington's threats that it would respond to breaches of that arrangement, it has so far shown no sign of doing so. Around 95,000 Syrians have arrived in the border region "as a result of the latest military operations", he said.
  • Diver Dies During Rescue Efforts for Cave-Trapped Thai Boys

    Diver Dies During Rescue Efforts for Cave-Trapped Thai Boys

    However, on the return dive, the man is said to have lost consciousness as he apparently did not have enough oxygen for himself. Another video has helped boost morale as its messenger knows better than most what the boys and their coach are going through.
    Video shows man pick up woman who fell from moving SUV

    Video shows man pick up woman who fell from moving SUV

    The man driving is seen calmly stopping his vehicle and dragging the woman back inside, then driving off as other drivers watch. The incident on Monday afternoon was captured on video at an intersection near the University of South Florida in Tampa.
    China rejects 'blackmail' on eve of U.S.  tariff hike

    China rejects 'blackmail' on eve of U.S. tariff hike

    Donald Trump's trade war could potentially drag in products from other American trade partners, undermining relations. The administration is also weighing auto import tariffs and restrictions on Chinese investment in USA technology.
  • We're easy to analyse but hard to beat, warns Andersson

    We're easy to analyse but hard to beat, warns Andersson

    How he has conducted himself as a person is an absolute example for us all. "I think it would be fantastic for everyone". His back-room staff also includes two Scots in Billy Reid and Kyle McCauley and a Welshman in Alan Curtis.
    Thai diver dies during cave rescue attempt - #GME

    Thai diver dies during cave rescue attempt - #GME

    They had been practicing wearing diving masks and breathing, in preparation for the possibility of diving. He said that the last time the two spoke, "we talked about the kids - whether they were out yet".
    'Fanney Khan' trailer to be out on Friday

    'Fanney Khan' trailer to be out on Friday

    In the trailer, we can see how a father tries his best to the dreams of his daughter. To launch Lata as a singing sensation, Fanney Khan needs money that he doesn't have.