Trump administration cuts grants that help consumers get ACA coverage

Lloyd Doyle
July 11, 2018

- Global stocks tumbled Wednesday after Beijing hit back at USA plans for tariffs on $200 billion more Chinese exports, with tensions rising over the trade war between the world's two largest economies. It includes fruit and vegetables, handbags, refrigerators, rain jackets and baseball gloves.

Last week, Washington imposed 25 per cent tariffs on $US34 billion of Chinese imports, and Beijing responded immediately with matching tariffs on the same amount of U.S. exports to China. USA officials insist China's retaliatory tariffs are unjustified.

These new suggested levies won't take effect until after a public comment period which runs through August.

"Rather than address our legitimate concerns, China has begun to retaliate against United States products ..."

China slammed the US threat to expand tariff hikes to imports including apples, fish sticks and French doors as a "totally unacceptable" escalation of their trade battle on Wednesday and vowed to protect its "core interests".

Trump has campaigned on the claim that trade partners are taking advantage of Americans due to "terrible deals" made by previous U.S. presidents. The tariffs announced Tuesday would be the third wave.

"It is totally unacceptable for American side to publish a tariff list in a way that is accelerating and escalating", said a Commerce Ministry statement.

It also said that China would have to respond to the United States actions.

"They continue to insist the problems we've identified are not real problems", a senior administration official said.

The White House has complained that China has used predatory practices in a relentless push to grant Chinese companies an unfair advantage in the industries of the future, including robotics, electric cars and biopharmaceuticals.

"We have an absurd policy risky, stupid".

"It will get worse because nobody will back down: it's a game of geopolitical chicken, and nobody wants to swerve as nobody can afford to lose".

"It is a chaotic time in global trade", said Li.

It wasn't immediately clear how China would respond to the new tariff list. President Trump had warned China that if the country retaliated to those tariffs, he would impose additional ones; China did, quickly adding tariffs to more than 500 different American imports. The Chinese government's industrial strategy to make its goods competitive on the global market, in place since 2015, seems to have been one of the key instigators of Trump's trade war.

ANALYST'S TAKE: "Given the magnitude and breadth of the tariff list, the impact is expected to ripple through supply chains and cause collateral damage on regional economies", Zhu Huani of Mizuho Bank said in a commentary.

Even more tariffs could be on the way.

The Trump administration announced Tuesday that it had has begun the process of implementing fresh tariffs on $200 billion worth of imported Chinese goods. He has not formally directed Lighthizer to prepare that list.

Other reports by Iphone Fresh

Discuss This Article