Chinese media calls for 'people's war' as United States trade war heats up

Lloyd Doyle
May 14, 2019

"There can be some retaliation, but it can't be a very substantial by comparison". It also warned that it had begun the process of raising tariffs on a further $US300 billion worth of Chinese imports, meaning essentially all Chinese imports going to the United States will now be hit with 25% tariff rates. He also said he plans to meet with Russian President Vladimir Putin.

Trump had already hit a further $50 billion in Chinese goods with tariffs of 25 percent last summer.

The list of 3,805 product categories is a step toward carrying out President Donald Trump's May 5 threat to extend punitive 25% duties to all Chinese imports, the U.S. Trade Representative announced.

Numerous fact checks, including an ABC News fact check from December, have found the same.

Among U.S. imports from China that have yet to face higher tariffs are common consumer products including cellphones ($45 billion worth), laptops ($38 billion), puzzles ($12 billion), and video game consoles ($5 billion).

The president suggested that manufacturers who make goods in China could shift production to other countries to avoid the tariffs. He noted the dispute's impact on farmers back home. After being pressed by Fox News Sunday anchor Chris Wallace, Kudlow said that "in fact, both sides will pay".

The latest US duties could knock 0.5 percentage points off annual Chinese economic growth, and that could widen to 1 percentage point if both sides extend penalties to all of each other's exports, economists say.

"Yes, to some extent".

"Instead of a full-blown trade war, a "partial trade war" that would see the two sides continue to negotiate is the more likely option", Ronald Chan Keen Lok, Vice President at Target Capital Management, told Al Jazeera. The U.S. increases apply to Chinese goods shipped since Friday, and those shipments will take about three weeks to arrive at U.S. seaports and become subject to the higher charges. That's 70 per cent of the US economy. Unlike many other news organizations, we have not put up a paywall. "So if I pay $375 for the TV, I've sent $75 in tariffs to the Treasury Department", he said, demonstrating that the $75 price hike is paid for not by China but by the consumer.

"I think that China felt they were beaten so badly in the recent negotiation that they may as well wait around for the next election, 2020, to see if they could get lucky & have a Democrat win - in which case they would continue to rip-off the United States of America for $500 Billion a year", Trump said.

Trump has said he is in no rush to finalise a deal with China. The announcement followed the hike to levies the Trump administration implemented on billions of dollars' worth of Chinese imports late last week. The chances of such a meeting "were pretty good", he said, adding that there are "no concrete, definite plans" for when the U.S. and Chinese negotiators will meet again.

After China announced it would raise tariffs on $60 billion worth of American goods, the Dow Jones industrial average fell Monday afternoon by more than 700 points or almost 3 percent, according to The Washington Post.

China's move to hike tariffs came in response to the U.S.'s decision last week to increase levies on US$200 billion in Chinese imports to 25 per cent from 10 per cent. Trump on Monday accused China of backing out of a deal that was taking shape with USA officials, saying Beijing reneged on an agreement to enshrine a wide range of reforms in Chinese law.

China raised tariffs, first imposed in 2018, on $60 billion of American goods, saying they will go into effect on June 1.

Heightened trade tensions between the USA and China over the last few days, that seemed to catch many media outlets and pundits off-guard, were actually always lurking just beneath the surface.

Other reports by Iphone Fresh

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