The U.S. Energy Industry Cant Afford A Trade War

Lester Mason
July 12, 2018

President Trump published a list of Chinese goods he will give a tariff of 10 percent on, which are worth a total of £151 billion.

The Chinese government, however, called it "totally unacceptable" and said it would take unspecified countermeasures.

Donald Trump's threat to impose tariffs on an extra $200bn of Chinese imports is causing rising anxiety.

The tech sector, more broadly, will suffer from tariffs due to the nature and complexity of the worldwide supply chain that it relies on.

But Trump has said continuously that China has taken advantage of the US economy, and he has vowed to hit almost all the country's products with tariffs, as much as $450 billion.

Lighthizer said the initial $50 billion in USA tariffs were aimed at goods that "benefit from China's industrial policy and forced technology transfer practices".

President Donald Trump has threatened higher tariffs on more than US$500 billion of goods, or almost all of China's annual exports to the United States.

Global stock markets fell heavily yesterday after the US Trade Representative outlined plans for a 10% tariff on other 6,000 individual Chinese imports (everything from meat and vegetables to stamps and baseball mitts).

Farmer Terry Davidson walks through his soy fields July 6, 2018, in Harvard, Illinois, the same day China imposed retaliatory tariffs aimed at the USA soybean market.

South Korea's trade ministry said in a statement that the trade war could be "prolonged and spread", adding that it would prepare responses and scenarios to cope with the economic impact of the trade row.

The $200 billion far exceeds the total value of goods China imports from the United States, which means Beijing may need to think of creative ways to respond to such USA measures.

The Trump administration said the new levies are a response to China's decision to retaliate against the first round of USA tariffs.


US Trade Representative Robert Lighthizer said China's retaliatory tariffs were "without any worldwide legal basis or justification".

'Given China's likelihood of retaliation, it's also billions worth of new tariffs on American exporters'.

The latest round of import taxes on Chinese goods has a two month public commentary period and the U.S. administration is being open about the fact that they expect China to discuss the move leading one to wonder if it will actually be imposed.

The US said it had no choice but to move forward on the new tariffs after China failed to respond to the administration's concerns over unfair trade practices and Beijing's abuse of American intellectual property, according to two senior officials who spoke to reporters.

In financial markets, MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.5 per cent, while the main indexes in Hong Kong and Shanghai fell more than 2 per cent.

The US Chamber of Commerce, which has supported Trump's tax cuts and efforts to reduce regulation of businesses, also criticised the administration's move.

"Tariffs are taxes, plain and simple".

Some US business groups and senior lawmakers sharply criticised the latest action on Tuesday, with Senate Finance Committee Chairman Orrin Hatch, a Republican, saying it "appears reckless and is not a targeted approach". Imposing taxes on another $200 billion worth of products will raise the costs of every-day goods for American families, farmers, ranchers, workers, and job creators.

The U.S. trade deficit in goods with China ballooned to a record $375.2 billion a year ago, stoking his anger over trade policies.

The earliest they would come into effect is September.

China's exports have mushroomed since it joined the World Trade Organisation in 2001, making it the world's second-largest economy and prompting widening criticism in recent years from trading partners that it has unfairly used global trade rules to its advantage.

Other reports by Iphone Fresh

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