Nike, Adidas, among 170 firms urge Trump to end China trade war

Lloyd Doyle
May 23, 2019

Beijing retaliated by charging higher tariffs on $60 billion of American products.

Best Buy's CEO is warning that prices will rise if the US applies another round of tariffs on Chinese goods.

On Thursday, China blamed Washington for wrecking the talks and insisted the USA must alter its "wrong practices" before negotiations can resume.

Members said they face increased obstacles such as government inspections, slower customs clearance and slower approval for licensing and other applications.

Furthermore, the tariffs and rising protectionist tendencies have prompted many American companies to change their supply chain strategies, the survey revealed.

Markets in China closed sharply lower with the Shanghai Composite and the Hang Seng both ending more than 1% lower.

On Tuesday, a top business lobby in China released a survey of its members that found just over 40 percent had relocated, or were considering moving production facilities, outside of China because of tariffs.

Some of the world's biggest footwear firms are urging President Donald Trump to end the U.S. trade war with China, warning of a "catastrophic" effect on consumers.

Meanwhile, former CEO George Koo stressed that ending tariffs on the two United States neighbors might have little impact on the trade war with China because the situation will worsen anyway due to the Trump administration's actions. He stated that the escalating tensions pertaining to the trade war with the United States and the complexities of global political dynamics could prove to be detrimental to China's progress in the near term.

No talks between top Chinese and U.S. negotiators have been scheduled since the end of two days of discussions in Washington on May 10, the same day Trump imposed the higher levies on Chinese goods. The list includes helicopters and aircraft from Airbus as well as European exports like: famous cheeses like Stilton, Roquefort and Gouda, wines and oysters, ceramics, knives and pajamas.

The EU imposed import duties of 25% on a $2.8 billion range of imports from the United States in retaliation for U.S. tariffs on European steel and aluminum. Targeted US products include Harley-Davidson motorcycles, bourbon, peanuts, blue jeans, steel and aluminum. According to diplomats, Germany, whose exports of cars and parts to the United States are more than half the European Union total, wants to press ahead with talks to ward off tariffs on automakers Volkswagen, Mercedes and BMW.

USA soybean exports to China have fallen by more than 80 percent in the past year after China imposed retaliatory tariffs and switched to buying soybeans from Brazil and Argentina.

China retaliated by announcing plans to raise levies on $60 billion (Sh6 trillion) of U.S. imports from June 1.

Mexico on June 5, 2018 imposed tariffs of up to 25% on American steel, pork, cheese, apples, potatoes and bourbon, in retaliation for USA tariffs on Mexican metals.

Mnuchin said the Trump administration is open to holding new talks with China if the two sides can proceed on the basis of previous negotiations. The Chinese video surveillance company Hikvision says it is taking concern about the use of its technology seriously following a report that the US may block several Chinese surveillance companies from buying American components.

Mr Trump lifted levies on $200bn worth of Chinese imports into the USA from 10% to 25% more than a week ago after Washington and Beijing failed to reach a deal on trade. But that began to change when a 25% tariff on goods like furniture went into effect two weeks ago.

Chinese Foreign Minister Wang Yi, speaking at the Shanghai Cooperation Organisation meeting in Bishkek, Kyrgyzstan on Wednesday, said China's door is open if the U.S. is willing to negotiate in an equal manner, but will definitely fight until the end if the USA opts for "extreme pressures". -China trade dispute deepen. "Your proposal to add tariffs on all imports from China is asking the American consumer to foot the bill", the letter said.

Other reports by Iphone Fresh

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