China says trade war would bring `disaster' to world

Lester Mason
March 15, 2018

Like an itch he's unable to stop scratching, Trump just can't seem to leave Germany alone.

"It seems very odd to put pressure like that on allies", said Sebastian Dullien, a senior policy fellow at the European Council on Foreign Relations in Berlin.

"And much of it is subsidized with money created by our trade deficit", says Manning, "that gives them huge amounts of cash and reserves to be able to do this kind of thing".

Trump's threat was part of a dispute sparked by his announcement of tariffs on steel and aluminium imports, although the "America First" Trump administration has said it will consider exceptions and has already spared Mexico and Canada. "I expect that Canada and Mexico will take action to prevent transshipment of steel articles through Canada and Mexico to the United States", he wrote.

Washington is targeting Chinese high technology companies to punish them for China's investment policies that effectively force USA companies to give up their technology secrets in exchange for being allowed to operate in the country along with other allegations of intellectual property theft. Unlike antidumping or countervailing duties, which are meant to remedy damage to US industries caused by unfair competition and target specific companies or countries, "safeguard" tariffs focus on national security and typically apply to all countries.

"We have noticed that some foreign-funded businesses have complained about China's investment environment", Zhong said.

Le Maire's comments come after U.S. President Donald Trump announced last week a proposal to raise import taxes to 25 percent on steel and 10 percent on aluminum.

US Trade Representative Robert Lighthizer, addressing his Canadian and Mexican counterparts at the conclusion of the talks on March 5, warned that time was running out on the Nafta renegotiation effort and said the US was willing to go it alone if future meetings failed to get a good deal.

But if the USA and the exempt countries don't produce what they need, American buyers will have to pay a higher price that includes the tariff (25% in the case of steel, 10% for aluminium). "What do we have to do?'" the president said at a campaign rally in Pennsylvania on Saturday.

The European Union is among them, and that would cover British exports of steel for the time being.

"They say: we want those tariffs taken off. You can't cooperate when you're getting whacked around", the person told Reuters. "We're going to tax BMW".

In a speech in the U.S. on Sunday, Mr Trump lashed out at the European Union, saying they erected "horrific" trade barriers based on environmental and other regulations. It was greatly feared that Canada, the number one supplier of steel and aluminum to the US, would be included, but it appears someone managed to change the president's mind. Germany's January's trade and current account surpluses were each the highest on record for that month. But if the negotiations do not proceed smoothly, the U.S.' trade actions might send shockwaves throughout the global economy.

The EU has been talking with partners about a legal challenge at the World Trade Organization to Trump's plan.

The European Commission, which coordinates trade policy for the 28-nation EU, the world's biggest trading bloc, has said it is ready to impose safeguards, tariffs or quotas to protect its own steel and aluminium industries.

For now, the president's rhetoric will concern Merkel but it's unlikely to succeed in riling her yet.

Asked to respond to Trump's accusations that the EU is imposing barriers to USA automakers, Malmstrom said that "it's hard to argue on Twitter over these issues, but the European Union is a very open market".

Other reports by Iphone Fresh

Discuss This Article